Developers Village Building Company submitted a development application for the stage one subdivision to Queanbeyan City Council for public consultation, which will open next week.

In line with the approved concept plan, the development application includes plans for 127 dwellings, ovals, tennis courts, community parks and a dog park.

Stage one is the first of four stages, with the development applications for the following stages to be submitted in the coming months.

In total, the South Tralee development will have 1227 dwellings and include plenty of open and community space.

Village Building Company managing director Bob Winnel said the entire area will be known as South Jerrabomberra.

"Further land to the south is currently undergoing rezoning and will also form part of this estate," Mr Winnel said.

"South Jerrabomberra will have about 2000 dwellings, that includes South Tralee. [In total] about 6000 people and about $1 billion in housing, plus some commercial," he said.

The development was mired in controversy from the outset, with vehement opposition from the Canberra Airport and lack of support from the ACT and federal governments due to the siting of the development beneath - but outside - the Australian Noise Exposure Forecast.

The NSW government approved the rezoning plans for South Tralee in November 2012. Calling it a win-win situation, the government said the plans allowed affordable housing to be built near the capital, while allowing Canberra Airport to pursue development without affecting future residents of the proposed development.

Mr Winnel said the development was down to one-third of its original size, to accommodate the Canberra Airport's proposed future plans for a 24-hour freight hub.

Homes at South Tralee will also be built with strict aircraft noise-abating features.

"It has taken a while, it's been 13 and a bit years in the process so I can't say we're full of joy about the time it's taken but we're relieved that its finally happening," Mr Winnel said.

Another "significant step forward" for the project, said Mr Winnel, was the co-operation of the ACT government in looking at a direct route from the new suburb to the Monaro Highway.

"For the last 13 years, the ACT government has not been co-operating on the location of that roadway.

"We are co-operating with the ACT on new technical studies to establish what the best connection will be," he said.

ACT Chief Minister Andrew Barr said the government had requested further information from Village Building Company on traffic modelling.

"All parties are working co-operatively to reach consensus," Mr Barr said.

A spokeswoman for the Canberra Airport said all their issues with the proposed development at South Tralee were resolved some time ago.