A DECISION on the controversial $2.5billion Kings Forest residential development near Casuarina is now not expected before the end of next month.

The Tweed Daily News understands that the Federal Government has requested developers Leda provide extensive and complex new information on the state-approved project, which it is assessing under the Environment Protection and Biodiversity Conservation Act.

One of the most contentious issues to be determined is whether a dog ban should be imposed at the site, with environmental groups and Tweed Shire Council calling for one to protect a koala colony.

But Leda is adamant the development would not proceed under such a ban because it would not be commercially viable.

This could throw a spanner in the works for the State Government, which is counting on Kings Forest and Leda's other residential development, Cobaki, playing a major role in accommodating the Tweed's projected population growth over the next 17years.

The 880ha Kings Forest site is proposed to eventually house more than 10,000 residents in 4500 dwellings.

Under the State Government's Far North Coast Regional Strategy, the Tweed is "assigned" to accommodate an additional 19,100 new dwellings by 2031.

This is to cater for population growth projected at 36% by 2031, from 88,437 residents in 2011 to 104,300.

"The major development fronts of Kings Forest and Cobaki will assist the region in meeting dwelling targets set under the FNC Regional Strategy," the latest NSW Department of Planning and Environment's Far North Coast Residential Submarket Analysis states.

The Tweed's population grew by 6906 between 2006 and 2011.