Work could begin as early as next year. Melton Council recently showed off the area to more than 35 developers from interstate and overseas who could partner it in developing its 381-hectare portion of the 2400-hectare site.

The Toolern development will eventually include an industrial estate and commercial space, a shopping centre, schools, a railway station, parks and a mix of low- to high-density housing.

Council planning development manager Luke Shannon said the master plan should get the tick of approval from Planning Minister Justin Madden by the middle of the year and the council would sign an agreement with a developer by the end of the year.

Work on the first houses should start in the middle of next year.

Mr Shannon said it was an opportunity to start from scratch and create a "walkable" community where residents could have access to schools, shops, recreation and work without spending hours in traffic.

It was crucial to get State Government support and gain developer confidence so that infrastructure, such as a proposed railway station, would go ahead.

The business park was also vital

to make sure that the growing

population had access to local employment.

While the council's attention will be focused on pouring money into Toolern, Mr Shannon said it was "acutely aware" of the need to connect it to Melton via roads and paths, and to continue to develop Melton so it was not left behind and turned into an unloved backwater in the shire.

"Toolern will bolster services for the existing township and there'll be the chance for Melton residents to use the new infrastructure."

Parks Victoria has finished a master plan for the 131-hectare Toolern Creek Regional Park that will border the western edge of the council-owned site. The State Government has committed $3.27million to stage one of the development.