The state government has rejected a proposal from Maitland councillors to change planning controls to allow more ground floor space to be habitable in dwellings in flood-prone areas.
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Council approached the state and federal governments last October to ask for controls to be relaxed to allow as much as half the floor space in Central Maitland buildings, below the flood planning level, to be habitable.
In a letter to NSW Planning Minister Rob Stokes, council noted that the move could help increase the population of Central Maitland from 1700 to the pre-1955 population of 5400.
But council has not received a response from the federal government and the state government rejected the idea.
A letter from a spokesperson for Mr Stokes noted that the change would be at odds with recommendations from the State Emergency Service and NSW Office of Environment and Heritage.
"I support council's efforts to revitalise Central Maitland and note that a number of actions are identified, including those supported by state and federal government funding," the letter noted.
"I understand the actions already underway are showing promising results and encourage you to identify other opportunities to progress this work within the current policy framework."
Cr Arch Humphery said at this week's council meeting he was trying to get a solution that brought planning in Central Maitland and Lorn into the 21st century.
"It's very disappointing to get the reply we got from the minister's staff," he said.
"I'm not quite sure whether the minister understands the situation that applies to Central Maitland and Lorn.
"Every single property in Lorn and Central Maitland that's flood prone has habitable floor space below the flood level and it has for 60 years."
