Landcom has revealed about 3500 new homes are set to be built in Glenfield.
The government development organisation this week announced it would "transform surplus government land" at the greater Hurlstone Agricultural High School site into a "vibrant new community".
Landcom chief executive John Brogden said plans for the government-owned land could progress now that an earlier decision to relocate the agricultural high school to Hawkesbury had been overturned.
"Landcom is thrilled to deliver a thriving new sustainable community within the Glenfield Precinct, with around 3500 new homes and a large tract of high-quality, public open space that retains Glenfield's rich history as a significant agricultural education precinct," he said.
"A more detailed concept plan will be delivered for public exhibition in close consultation between Landcom, the NSW Government and Campbelltown Council."
Mr Brogden said up to 350 of the new homes would be reserved for renters.
"We will ensure that a key feature of the plan is to set five-10 per cent of new homes in the community aside for affordable rental housing, for key workers such a nurses' aides, child care and retail workers," he said.
"The community will also showcase the importance of connectivity and social connectedness with the new community having ease of access to Glenfield Railway Station, the M5 Motorway, a new commercial centre and a new primary school which is part of the development's masterplan.
"Landcom is proud to ensure that the heritage values of the neighbouring Macquarie Fields House will be protected and other significant heritage value areas such as the Memorial Forest that pays tribute to school students who served in World War One and World War Two will be conserved."
Macquarie Fields MP Anoulack Chanthivong - a vocal opponent of development at the Hurlstone site - said maintaining green space was vital going forward.
"Ideally, the green open space at Hurlstone would be left alone but this government's obsession with overdevelopment means that our community will have to put up with more congestion and concrete," he said.
"Whilst the fight to save Hurlstone at Glenfield has been won, we now need to save as many hectares of green open space as possible.
"Hurlstone Agricultural High School must be provided with extensive hectares for its dairy, boarding facilities and to meet the future demands of agricultural studies."
Mr Chanthivong said there were a number of boxes the government had to tick with this development to meet the community's needs.
"I have already advocated to Landcom and the Education Minister that it is crucial to leave extensive green open space around the hilltop schools of Ajuga, Campbell House and Glenfield Park," he said.
"The students at these schools have special needs and the green vista is crucial to their schooling and overall well-being.
"I will also insist on adequate infrastructure to ensure existing residents don't continue to feel the brunt of overdevelopment.
"The new primary school will need to be large enough to cater for local families, more commuter parking is essential, streets need to be wide enough for on-street parking and the community will need recreational facilities and playgrounds in the absence of large backyards."
The new community is expected to be built over 20 years, including sporting fields, parks, cycleways, community facilities and health care services.
It is anticipated that the Glenfield masterplan rezoning process will be completed in early 2021, before an expected development application will be lodged with Campbelltown Council and, if approved, will allow work to commence by early 2022.
"I look forward to reviewing the concept plan when it is released next year and I will be scrutinising it closely to advocate for the best possible outcome for our community," Mr Chanthivong said.
"I will always fight for my community's fair share."