The revised plan also includes a rule requiring a minimum of three hours of sun a day to be retained to the town square, as well as to adjoining homes.

It also reduces the area set aside for a new supermarket east of Callam Street from 1500 square metres to 500 square metres, to allow for a small convenience store instead.

The rules around solar access and the convenience store were changed after months of community feedback on the plan.

However the draft variation retains one of the more controversial changes, to allow for building heights of up to 28 storeys.

An accompanying consultation report said while there were mixed views on the building height changes, government officials decided to proceed with them after weighing up the anticipated density and scale of the buildings, and their impact on traffic, access and surrounding land use.

Officials also decided to keep a rule that would allow developers to add another four storeys onto towers, again despite mixed feedback.

Woden Valley Community Council president Fiona Carrick said she could not understand how 28-storey buildings in the town centre would "facilitate investment".

"The town square will be overshadowed and miserable," she said.

"People won't stay there, they'll scuttle between the mall and the bus exchange. I'm keen for urban densification but how does that create activity?"

Part of Arabanoo Park, opposite the bus interchange, will be rezoned for community-facility use under the new masterplan.

The consultation report said the rezoning was in response to the need to "consolidate community uses" in the Woden town centre.

"A range of community uses are also permitted in the various commercial zones of the town centre, as well as existing community facilities including the library and health centre within the centre," it reads.

But Ms Carrick voiced concerns it could open the way for social housing to be built on the park.

The draft masterplan did not allocate areas for aged and public housing within the town centre, however the consultation report notes: "though the current and proposed Territory Plan zones and provisions permit both aged and public housing within the town centre and throughout adjoining areas".

The revised draft plan will be scrutinised by the ACT Legislative Assembly's planning and urban renewal committee.

Submissions should be emailed to committees@parliament.act.gov.au by close of business September 15.