The Department of Planning will place the plan, to be built on the former Avondale Airport site, on public exhibition today.

Developer Keith Johnson said that the plan would provide much-needed affordable housing, with land and housepackages to start from $270,000.

First-home buyers will be offered the chance to sign up for a new scheme in which they can buy half a house in the estate, until they can afford the rest.

Mr Johnson said the housing project would form the backbone of the push to make the Morisset district a regional centre.

An economic study prepared for the plan said the development would generate economic activity worth $1.9 billion.

The developer will provide $125 million in infrastructure in the area to coincide with the development, which will be built in stages over 15 years.

The infrastructure funds were negotiated with the NSW Government and councils.

"In the past, residents of new subdivisions have had to wait for councils and the State Government to fund infrastructure," Mr Johnson said.

"In this development, the residents will know up front exactly when the infrastructure will be built."

Works include two sport and recreation areas, a community centre, parks, paths, cycleways, a community bus and roadworks.

The development is a joint venture between the Johnson Property Group and Avondale College, which is affiliated with the Seventh Day Adventist Church.

It will boost the college's quest to become a university and add about 6000 people to Cooranbong, whose population is about 4500.

Mr Johnson said the plan would strengthen the nearby Cooranbong shops.

Land will be set aside for health services, a primary school, a commercial area and houses will have recycled water for toilet flushing and gardens.

About a third of the 365-hectare site will be conserved.

Mr Johnson said construction was expected to begin in September.