Coming in the aftermath of the 15-year-long battle over Tralee, the ministerial direction would prevent people on Yass, Palerang and Queanbeyan council boundaries from subdividing their rural holdings for residential development, higher residential densities, or for schools or childcare centres.

A Sutton landholder said they were given two weeks last year to comment on the draft Section 117 direction. A NSW Planning letter said the proposal related to Canberra's 24-hour curfew-free status and suitability as an overflow airport for Sydney.

They had not heard a word since, but the issue has arisen in the Canberra Airport's 2014 draft master plan. Setting out airport development for the next 20 years, the plan says under the ministerial Section 117 Direction about 750 homes within the (noise contour map) ANEF 20 may be limited to existing rights only.

Airport managing director Stephen Byron said the NSW government had drawn a line in the sand when it resolved the debate over Tralee, determining where residential development started and finished. ''It said we, the NSW government, will allow residential outside of ANEF 20, and we will not allow development inside ANEF 20. That's where it has been crystalised and so we now support development in accordance with that decision; namely, outside the ANEF 20.

''Queanbeyan Council and NSW Planning are updating their planning documents, or their long-term planning strategy, to take this into account.''

Mr Byron said developers had sought to build 3000 homes at Tralee, but under this directive, the balance of those homes would have to move further south, to avoid aircraft noise.

Defence, Virgin Airlines, Qantas and the federal Department of Infrastructure and Transport support the draft direction proposal. But in submissions to NSW Planning, residents at Googong, Sutton, Jerrabomberra, including a school principal, and on the outskirts of Queanbeyan, say the proposal is wrong and unnecessary.

Opposition resources and primary industry spokesman Steve Whan said the proposal would treat land around Canberra Airport differently to every other airport. ''It went a bit further than the minister originally intended and I suspect the reaction to it is why it has sat on his desk and has not been actually gazetted. It would have locked in Tralee to the boundary approved as of now and would never let them go into an area allowable under Australian planning laws.''

Queanbeyan Council's submission says the noise map could undermine land use planning in South Jerrabomberra.

In other submissions, people owning land for 40 years or longer, with plans to subdivide to pay for their retirement, say the proposal should be shelved.

The draft direction was premature, relying on growth forecasts prepared by the airport's owner and considered optimistic by NSW Planning, an objector said.