It's back to Plan A for a $1 billion housing and lakes recreation development at Hamilton's northern gateway after the proposal was knocked back as a Government special housing area.

Perry Group chief executive Richard Coventry said the project would now be pursued through the private plan change process the company started two years ago before it was encouraged to try to speed up a required zoning change by applying to provide an affordable housing area.

He hoped environment commissioners could hear the case before the end of the year.

Perry Group is proposing an 85 hectare development called Te