The block, owned by the Maas family at 30b Sloane Street is the second land parcel in the area proposed for more housing. It adjoins the council's block in Hovell Street where a 29-lot subdivision is planned.

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Councillors at their meeting on Tuesday unanimously issued deferred commencement for the 14-lot development behind Sloane Street and just south of Lansdowne Street. Blocks will range from 704 to 905 square metres.

The approval came after considerable discussion and presentations from Sloane Street resident, Sue Theron, and the developer's consultant, Greg Todd.

Ms Theron argued the steep slope (with 22 per cent gradient) and increase in hardstand areas would inevitably mean water runoff down the hill into the rear of Sloane Street houses. She feared this would undermine structures.

"(Currently) there is no perceived runoff in its undeveloped state," she said

"Instead you have a lot of subsurface water movement, so for a week after large storm events it is still discharging into the main roads and you can't see runoff on the hill."

While she believed the DA addressed some of this through a stormwater management facility, she said three lots to be developed directly behind Sloane Street homes would be directly affected by gravity fed water.

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"The water will go directly into the (existing) laneway and the proposed 150mm kerb does not seem enough to take care of that runoff," Ms Theron said.

She requested an additional consent condition that would ensure there was no runoff impact on the rear laneway, which residents used for access, and properties.

Ms Theron pointed to the Snowgums housing estate where the council had to install larger stormwater drains to cope with what she said was higher than expected runoff, post development, that had caused erosion.

She and other submitters to the DA were also worried about traffic impacts on a rear laneway and loss of privacy from removal of poplars in the lane.

However Mr Todd said only one lot would use the lane for access, while other owners would use a new 15-metre wide road to be created off Lansdowne Street. He also told councillors that only five of about 20 to 30 trees would be removed. Several of these were around the stormwater management system. Tree replacement and landscaping are planned for the site.

Planning director Scott Martin said while the poplars might look good, the exotic species damaged public infrastructure and it was commonly accepted as inappropriate in an urban setting.

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He also agreed with Mr Todd that the stormwater management measures were adequate. Water NSW signed of on these. Under a voluntary planning agreement, the developer will build a stormwater treatment facility valued at $75,800, provide for its maintenance and renewal, extend a footpath from Lansdowne to Sloane Street, kerb and gutter the western side of the lane and rejuvenate the batter to Sloane Street at the top of Lansdowne Street, among other work.

The total work is estimated to cost $192,800 and must be done before a construction certificate is released.

Mr Todd told councillors that the stormwater design exceeded the council's requirements and would withstand a one in 100-year flood. Lot owners will also be required to have water gardens and tanks.

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"It offers an excellent opportunity for residential development," he said.

"The area lends itself to orderly expansion of housing and there is sufficient infrastructure."

The meeting also heard that the council had tried to negotiate vehicular access for the subdivision via its Hovell Street land but the developer's plans were "too far advanced."

Cr Margaret O'Neill welcomed the development, saying it would tidy up the area.

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