The Land Development Agency has confirmed asbestos is present at a site off Constitution Avenue designated for a $250million mixed-use development, including apartments for 800 residents.

Campbell historian Alan Foskett said a rubbish dump was definitely in the area of Constitution Avenue in the 1950s.

The Canberra Times also reported in 1953 that the fire brigade attended a fire ''in the rubbish dump near Constitution Avenue'' and that dumped rubbish there was ''persistently being set alight''.

Mr Foskett said the rubbish dump was in a creek bed and probably filled in when defence housing started to be built in Campbell in about 1957-58.

''Certainly there was a rubbish dump in that vicinity,'' he said.

Land Development Agency chief executive officer David Dawes says there was no health risk from the asbestos at this stage because it was bound in the soil.

The asbestos would be disturbed when moved during remediation but measures would be taken to ensure it did not become airborne including using water to wet down the soil and air-monitoring devices.

''Based on a contamination assessment by an independent consultant, works are required to remediate identified asbestos and petroleum product contamination, builder's rubble, rubbish and household waste in the south-east and central areas of the site,'' Mr Dawes said.

''Remediation of asbestos contamination in near-surface topsoils is also required in the central south-west and north-west areas of the site, which consultants have informed is bound within the root zone of grasses and weeds.''

The Environment Protection Agency needs to approve a remediation plan for the site. A construction environmental management plan also needs to be put in place to ensure the contractor takes the measures to keep the asbestos safely contained when moved.

''Works will be conducted in consultation with an environmental specialist who will also independently audit the affected areas once the remedial works have been completed,'' he said.

The LDA did not comment on locals being aware of the existence of a rubbish dump in the area in the past.

It is just the latest in a growing list of building sites contaminated by asbestos in the ACT, with sites at Kingston, Molonglo and Lyneham also affected.

A masterplan for the Constitution Avenue development is yet to go to the National Capital Authority.