Landcom has released its Macarthur Gardens North masterplan which is expected to deliver a mix of affordable and diverse housing adjacent to Macarthur train station.
Landcom chief executive John Brogden said the development would provide a choice of housing options including apartments and terraces and would also include affordable rental housing for key workers.
He said it would also protect the natural environment of the area.
"Landcom's ongoing commitment to creating sustainable and affordable communities will be exemplified at Macarthur Gardens North with well-located, diverse and affordable housing near major public transport options and beautiful, natural open spaces," Mr Brogden said.
"The project will be designed and delivered as a 5 Star Green Star Community, certified by the Green Building Council of Australia.
"This independent certification from Australia's lead sustainability organisation represents 'Australian Excellence' status, and ensures best practice standards of liveability, resilience, inclusion, affordability, and environmental quality.
"The project's environmental sustainability will be further enhanced by the plan to rehabilitate Bow Bowing Creek, protect the existing Cumberland Plain Woodland and River Flat Eucalypt Forest, which will create a liveable, sensitive development integrated with existing vegetation.
"Landcom's plan will also provide for new cycle and pedestrian connections to Western Sydney University, TAFE and Macarthur Station, which will allow residents to leave the car at home, and to walk or cycle to shops, open space, and public transport."
Mr Brogden said the design of new buildings and facilities would be determined by separate development applications, which would require their own approvals.
"The diverse mix of housing planned for Macarthur Gardens North will appeal to smaller households purchasing a home, many for the first time, as well as providing for those eligible for affordable rental housing," he said.
A development application for the terraces was lodged with Campbelltown City Council early last year, while the apartment buildings will be subject to future development approvals.
If approved, early works on Macarthur Gardens North is expected to commence in early 2022.
The planning proposal is being publicly exhibited by Campbelltown City Council until the end of April and residents can provide feedback on the plan via the council's website.