Buildings of up to six storeys would be permitted in parts of Curtin group centre under proposed changes to planning rules in the inner-south precinct.
The ACT government has started public consultation on a draft territory plan variation for the group centre, which services the populations of Yarralumla, Deakin, Hughes and Lyons.
It comes less than a week after the local residents' association withdraw an appeal against the approval of a contentious five-storey development at the Curtin shops.
The proposed new planning rules seek to implement the Curtin group centre masterplan, which was finalised in November following multiple rounds of public consultation.
A one-storey building height limit would be enforced around the centre's central courtyard, under restrictions aimed at protecting the precinct's "village character".
The remainder of the core retail area has been earmarked for two-storey buildings. However, developments of up to five-storeys would be permitted, provided the buildings were deemed to be complimentary to the precinct's character and would not block sunlight to adjacent properties.
The government's planning and development directorate is also proposing to allow six-storey buildings on the site of the Statesman Hotel, between Curtin Place and Strangways Street. Developments on land fronting Theodore Street, which is immediately east of the hotel, would be capped at two to three storeys.
Across the Curtin group centre, new developments would be required to include ground floor retail or commercial tenancies to encourage activity throughout the day.
The future of the precinct has been at the centre of intense community debate in recent years, as the Haridemos family's planned Curtin shops development divided residents and businesses.
The family's original plans for a six-storey mixed-use development at 41 Curtin Place were knocked back in February 2017, before the ACT Planning and Land Authority approved a scaled-back, five-storey proposal earlier this year.
The Curtin Residents' Association appealed the verdict to the ACT Civil and Administrative Tribunal, arguing, in part, that the building would diminish the precinct's "village character".
The appeal was withdrawn last week, with the association's president, Chris Johnson, conceding the group had failed in its attempt to negotiate further changes to the proposal.
Days earlier, angry local business owners and residents had urged the association to drop the appeal and allow the development to go ahead.
Public consultation on the variation to the territory plan is open until Monday, August 5.