Putaruru is set to get 1300 new sections in a major re-zoning exercise that vastly increases the size of the town.

The Putaruru Growth Plan is in response to a dramatic change in fortunes for the small Waikato town with population growth now positive after almost 20 years of decline.

Several rural areas adjacent to the town would be rezoned into a combination of residential, rural-residential and business zones, if the plan is approved by the South Waikato District Council.

The town is under pressure from those fleeing high property prices in the larger urban centres. Hamilton and Tauranga are both within an hour's drive. The rezoning is an attempt to cater to the demand for affordable housing and business opportunities.

Statistics New Zealand and Infometrics estimate the South Waikato district's population has grown by 1.3 per cent over the year to June, 2017. This reverses a trend of population decline that has averaged 0.2 per cent, per annum, since 2000.

The plan proposes areas for rezoning in the Maple Dr and Totara St vicinity, Overdale Rd, an area adjacent to Thornton St and Alexandra Cres, an area adjacent to Arapuni Rd, Golf St, and Lichfield Rd, and an area in the Sholson St and Ruru Cr vicinity. In total over 130ha could be rezoned.

South Waikato District Council Community Group manager Sam Marshall said 1300 new sections would be on offer to help combat the town's housing shortfall.

"This is a district that has suffered significant decline and a loss of population and a loss of jobs, essentially for at least 20 years. The reason we are now doing some growth planning is because we are now seeing some changes in that trend," he said.

He said population growth in the area was now on-par with the thriving Matamata Piako District.

"From around 2013 to 2016 we have been trending in a very similar way to the Matamata Piako District," he said.

"Over the last couple of years we have seen housing sale numbers triple so this is one indicator among many showing the increased level of demand from people coming and buying houses in the district."

He said if the council was to achieve its objective of growth for Putaruru it was essential that adequate infrastructure was in place.

"I often talk about housing [working in conjunction with the] opportunity to build a business. If you're wanting to bring people to live and work here it is actually really critical, you can not really have one without the other," he said.

He said the next step would be for the council to formally adopt the plan which would require use of the Resource Management Act process for a District Plan change.

Months of community and landowner consultation, in partnership with Pride in Putaruru and Putaruru Moving Forward, has resulted in the South Waikato District Council putting together the Putaruru Growth Plan.