An initial analysis showed there was still about 60ha in vacant lots or areas waiting to be subdivided that were available for urban development.
Depending on density this, if combined with further possible subdivisions, could last the town between 10 and 20 years, the report stated.
It was recommended that an Urban Growth Strategy be prepared prior to the review of Wairarapa's District Plan.
It was anticipated the work would require input from several professionals as well as wider consultation, and would take between six and 12 months to complete.
Council unanimously approved the recommendation to prepare an Urban Growth Strategy at last week's council meeting.
Chief executive Jane Davis said while there was no funding allocated in the annual plan for the strategy, she was confident council could absorb the cost, with the bulk of the work being done in-house by council staff.