The Hunter's newest town in 50 years, Huntlee was gazetted as a State Significant Site in 2009 and the state government remains the consent authority for the Huntlee Major Project Approval and any modifications to it.

An application by Huntlee developer LWP to amend the approval to allow for a new housing lot type known as Urban One has been approved by the state government.

An Urban One housing lot allows for smaller residential lots of between 217m and 354m. These lots would accommodate compact dwelling types and will be located around the commercial centre and proposed school site at Huntlee.

Responsibility for the Huntlee Development Control Plan was transitioned to council in 2018, to ensure the plan provides adequate controls to manage development outcomes.

After Huntlee lodged the request to amend the DCP to allow for these smaller lot sizes, council recently undertook community engagement which showed "strong opposition" to Urban One lots, with parking and traffic among the chief concerns.

Cessnock mayor Jay Suvaal said councillors were standing with the community by objecting to the approval of the Urban One lots.

"The community has raised a number of valid concerns in regard to parking, traffic, and amenity," Cr Suvaal said.

"There are also concerns about the lack of access to educational facilities and healthcare and the impact this would have by allowing further intensification of development at Huntlee.

"As local people, we know what is best for our community and we will do everything within our power to urge the state government to reverse this decision. I am encouraging the community to speak up on this one by writing to the Minister."

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A Department of Planning and Environment spokesperson said the modifications were approved following a "rigorous assessment" that included consultation with the community and councils.

"Seven submissions were received, two in support and three objecting, while two provided comments. No public submissions raised concerns about the lot sizes proposed," the spokesperson said.

"Our assessment found the change was consistent with the original concept plan and strategic planning documents for the area, it could be supported by existing infrastructure, and it would provide flexibility and affordable housing opportunities for the Hunter, while any impacts were minimal or could be managed."

Council will also write to Cessnock MP Clayton Barr, asking him to make representation to the planning minister to have the decision overturned.

Mr Barr said he would make representations on council's behalf, but said he understood the need for diversity of housing lots in the LGA, and that the market would determine if the small housing lots were needed or not.

"I suspect Huntlee have done their research, and if people buy them (the small lots) it will show," he said.

"As Cessnock develops and matures, we need to have a mix. Not everyone wants a quarter-acre block where they have to mow the lawn."

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