THERE'S been mixed reviews from the residents of Mooball and Burringbar following a decision to build 250 new homes in the area.

The Department of Planning and Environment announced this week it had approved the amendment of the Tweed Local Environmental Plan 2014 to rezone around 50 hectares of land south of the existing village at Mooball.

The decision paves the way for developer Jefferson Lane to build about 250 new homes on site, which could potentially increase the village's population from 170 to 750 residents - more than four times its current size.

PlanIt Consulting director Adam Smith, on behalf of Jefferson Lane, said he was very pleased the rezoning would allow the company to pursue a development application for the site.

"We are committed to ensuring that the development of the land will provide not only benefits to the local community by way of employment and services, but also to the wider community by way of much-needed affordable housing,” Mr Smith said.

The department's executive director of regions, Steve Murray, said the Mooball expansion supported the state's Far North Coast Regional Strategy.

"The rezoning will help the region meet its growing demand for housing through a diversity of lot sizes to suit different budgets for the growing population,” Mr Murray said.

But some residents aren't convinced.While final lot sizes and configuration will not be known until a DA is lodged, Burringbar's Peter Guinea says he is concerned about the size of the proposed blocks.

"I think they should be bigger blocks,” Mr Guinea said. "Squeezing them into subdivisions in the country doesn't make sense to me.”

Mooball resident and architectural designer Rachelle Longstaff said she saw both positives and negatives for the expansion.

"If it goes ahead, ourselves and a number of other local tradies will benefit; however, if it doesn't, we still get to live in a small village,” Ms Longstaff said.

But Burringbar resident Elke Meyer said she was concerned for business owners in the village.

"They're not going to stay the only business of that type in the area,” she said. "There will now be more competition so they're not going to make more money because there's more people here. You're going to have to divide up all of your profits amongst all the new businesses.”

Ms Meyer said she was also concerned about the type of people who would be attracted to the area.

"The infrastructure is never put in there properly, there's no jobs and low-income housing which brings a lower-socio economic group,” she said.

"It's going to bring an element that's not positive to the area.”