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Dwellings in the Town Inner area will be designed to sit lightly on the land, avoiding excessive excavation and land-forming enabling the landscape to dominate. Careful placement will ensure dwellings play a recessive role in the streetscape and do not dominate the views. Dwellings will retain and compliment the qualities of the heritage streetscapes and their contribution to the image of Castlemaine.

New dwellings will respect the form, scale and materials of the various periods of architecture without attempting to replicate historical architectural styles. New development is encouraged to be constructed with the limited palette of materials found in the character type e.g. weatherboard and brick, corrugated iron or tile roof materials, or other materials which respect this such as light weight cladding or render. Attention is paid to the appropriate building form which reflects the predominant front and side setbacks in the street, as well as roof form and articulation of the facades. Garages and carports will be set back from the front façade of the dwelling and preferably detached to ensure they do not dominate the streetscape.

The garden settings of the dwellings will be enhanced by low front fencing to enable views into the gardens and maintain surveillance of the street. Space for the planting of trees and other vegetation is provided at the side and rear of new buildings.

Large blocks provide the opportunity for increased housing densities while respecting the adjacent heritage context. Minimising new crossovers will enable the street pattern to be maintained while reducing the loss of valued street trees and wide grassy verges. Further street tree planting will assist in consolidating the precinct while offering shading and cooling benefits with a preference for the planting of ash species in the eastern side of the precinct. Any subdivision of large lots will ensure a generous setting and setbacks remain around existing dwellings with car parking located behind the dwelling.

In managed housing change areas (Castlemaine Town Inner 1) an increased diversity of housing types such as dual occupancies, town houses and multi dwellings will be provided while contributing to the preferred character of the Town Inner area into the future.

Areas subject to bushfire or flooding risk in minimal change areas (Castlemaine Town Inner 2) will need to be designed to adapt to the hazard through design, fencing, materials, and building height which will be different to current housing. Careful design will be needed to achieve the preferred neighbourhood character and may result in the delivery of less housing. Housing change will be limited to dual occupancies and replacement housing.