The changes to the DCP will allow a mixed use residential building to be built on the block of land bound by the old Hume Highway, Rainbow Road, Brewster Street and the Aboriginal Cultural Centre in Mittagong. It is opposite the Highlands Marketplace.

The initial proposal by the Blisset Group was knocked back by council for a number of reasons, including height, traffic and parking impact.

The group revised the proposal, following a community consultation on May 7, after more than 60 people turned up to the meeting at Mittagong RSL to talk to the Blisset Group's architect and planners.

Changes include affordable housing for 30 years, and scaled the height down from 18 metres to 15 metres, changing the building from a five story to a four story.

Other changes include that the entrance and exit is to be from the Old Hume Highway and an increase of one and a half times the parking, which is more than required by council.

The upper two levels of building will be set back from the front, giving the building an appearance of being a two story apartment block.

Major concerns for residents were the increase of traffic on Rainbow Road and Brewster Street, insufficient car spaces, height restrictions and basement flooding.

Community campaigner, Robyn Limbrick, still holds concerns about the basement flooding which wasn't brought up in the council meeting and feels that 1.5 parking spots per apartment is not enough.

"Young couples and families require two cars. Where are they going to park?," she said.

"They can't park at Woolworths. There's still going to be traffic issues around the area."

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