Council land may be earmarked for affordable housing in the Queenstown Lakes District.
The council has received a request from the Queenstown Lakes Community Housing Trust to transfer the land in Arrowtown for a 65-unit development.
Arrowtown has one of the highest median property values in the country - more than $1.3 million, according to QV.
The Trust's plans for the subdivision include affordable rentals, senior housing and one to four bedroom houses.
The council will also consider whether to allow the Trust to sell ten of the properties at full value on the open market to offset costs at a council meeting on Thursday.
The Local Government Minister would need to sign-off plans to allocate the land from public utility to housing.
In a report to councillors, policy planner Katie Russell recommends the council approve the transfer, but not plans to sell properties on the open market.
If approved by the Minister, the project would continue through a normal resource consenting process.
More than 580 eligible households are on the Trust's waiting list seeking housing assistance.