The announcement of new residential zones was made by Planning Minister Matthew Guy this week.

"The new zones work together with the strategic plans set out in the recently launched Central Highlands Regional Growth Plan, which recognises Ararat's important role as the region's western most regional centre," Mr Guy said.

Following public consultation and recommendations from the Residential Zones Standing Advisory Committee, Mr Guy has approved new residential zones for the city.

"With Ararat likely to grow to 12,600 people over the next 20 years, the new residential zones clarify what type of dwellings may be built where, in order to accommodate future residential and employment growth," Mr Guy said.

"It's important in Ararat to protect environmental and landscape values, by directing more growth to the central areas - and in the process provide for a wide range of housing types and lot sizes."

Ararat Rural City Council welcomed the announcement by Minister Guy on the new residential zones for Ararat.

"Finalising the residential zones is a step forward in providing security and confidence for development in Ararat," Mayor Cr Paul Hooper said.

Council had put forward to the Residential Zones Standing Advisory Committee that two areas of Ararat should be placed in the 'Neighbourhood Residential Zone'. These areas were at the foothills to the west of Ararat and the main thoroughfares such as Vincent, Barkly, Lambert and Banfield Streets.

Cr Hooper said unfortunately, only the foothills area has been approved.

To protect environmental and landscape values, the Neighbourhood Residential Zone will apply to the Ararat Hills area, on the western urban edge of Ararat.

The General Residential Zone will continue to apply to all remaining residential land in Ararat, allowing council to consider house, multi-unit and townhouse developments in appropriate locations. This includes central Ararat's main thoroughfares of the Western Highway both east and west of the central commercial area, Banfield Street, Barkly St West (Ararat Pomonal Road), Vincent Street (Port Fairy Road) and Pyrenees Highway.

Council said that the 'Neighbourhood Residential Zone' only allows less intensive development including smaller unit developments than the 'General Residential Zone' and is designed to protect the neighbourhood qualities of an area.

The 'General Residential Zone' allows for greater in fill development and subdivision and higher numbers of units in established areas to promote higher densities. The 'General Residential Zone' is now applied throughout all of Ararat and replaces the old Residential 1 Zone.

Liberal candidate for Ripon, Louise Staley welcomed the announcement.

"These new zones will provide certainty for the future growth of the Ararat Hills area. The zones will provide for a greater variety of housing across the municipality," Ms Staley said.

Ararat Amendment C33 will be gazetted shortly, however, Council is looking forward to the report of the Residential Zones Standing Advisory Committee and their justifications for applying the new zones.