Gunnedah Shire Council (GSC) unanimously voted to approve the rezoning of privately owned land that had been protected for environmental management since 2012.

GSC director planning and environmental services Andrew Johns said the environmental management zoning meant landholders were unable to utilise and develop their properties effectively.

"Council has had, for some time, representations from the owners of C3 environmental management land who have been frustrated by a change in zoning which was undertaken in 2012 that restricted what could be done with their land," Mr Johns said.

"This change will return that land to a zone that better reflects the land use and the zoning that was in place before 2012."

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The change to zoning in 2012 followed the Gunnedah Rural Strategy which identified the need to protect scenic hills, including Blackjack Mountain.

As a result, the independent strategy recommended land at the 450m contour line, or above, would be protected from primary production under the C3 environmental management zone.

Following GSC's vote on Wednesday, the protected environmental land will now be rezoned as RU1 primary production land - meaning development will be permitted.

"This change will allow additional permitted uses subject to development consent and will also now allow some uses to be undertaken without consent, and unlock economic benefits in this area," Mr Johns said.

"It's a good result. Environmental protection is always important to Gunnedah Shire, but this zoning restricted certain development on lands that have traditionally been cultivated or grazed."

Deputy mayor Robert Hooke said he was thrilled to be offering the zoning reversal to Gunnedah's landholders.

"The zoning resulted in unintentional consequences for landholders and posed serious economic risk for them," Cr Hooke said.

"It's taken a long time to get to this point but a reversal can now take place.

"There has been a significant body of work done to enshrine the rights of landholders and what they intend to do."

Councilor Murray O'Keefe said, while it had taken a long time to get to this point, he was delighted by the outcome.

"It's a great moment, my joy is one millionth of the joy that all affected landholders are feeling," he said.

Councillor Juliana McArthur described the reversal as an example of "cutting red tape".

"It's truly a momentous day," she said.

Gunnedah's Local Environmental Plan 2012 will be amended to reflect the zoning changes.

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