Proposed rezoning could transform Sebastopol into mixed-use hub

A significant rezoning proposal before Ballarat City Council could reshape Sebastopol, one of the region's most industrialised suburbs, into a mixed-use residential and commercial precinct within the next decade.

The draft planning scheme amendment would convert approximately 42 hectares of zoned industrial land along the Midland Highway corridor—currently home to manufacturing, logistics and storage operators—into a combination of medium-density residential, neighbourhood centres and green space. Council officers estimate the rezoning could facilitate up to 800 new residential dwellings and generate an estimated $120 million in development value.

"This proposal reflects changing economic patterns," said a council planning spokesperson. "Traditional heavy industry has moved away from inner Ballarat, and this land is better positioned to address our acute housing shortage." The city's median property price of $510,000 has climbed 18 per cent in three years, with first-home buyers increasingly priced out of established suburbs like Lake Wendouree and moving toward growth corridors in Alfredton and Delacombe.

However, the rezoning has generated fierce resistance from existing business operators and some residents who fear traffic congestion, noise and the loss of local employment. The Ballarat Manufacturing Alliance has argued that the proposal undervalues industrial land's strategic importance and could push employers to competing regional centres.

Planning consultant Helen Morrow told The Daily Ballarat that successful precedents exist. "When Footscray went through similar rezoning 15 years ago, early opponents acknowledged the mixed-use outcome created vibrancy and property appreciation," she said. "But infrastructure—schools, medical services, open space—must follow development, not chase it."

Infrastructure concerns loom largest. Sebastopol's public facilities, including the primary school and medical clinics near the Mount Clear shopping precinct, operate near capacity. A confidential council report indicates drainage and water pressure issues would require $8 million in upgrades before residential development could commence at scale.

The proposal also includes 15 hectares of new parkland linked to the Lake Wendouree recreation network—a feature developers and amenity advocates support. The green space component is designed to offset density and provide flood mitigation.

Public exhibition of the draft amendment begins 15 July, with submissions closing 29 August. A council decision is expected before the end of 2026. Early indications suggest the vote will be tight, with three councillors publicly backing the rezoning and two opposing it outright.

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