Manager district plan and growth Tony Quickfall says the current zoning has been in place since 2012.
"There was always an intention to rezone Carter's Flat at some stage. The Cambridge section of the Waikato Expressway, which is important in terms of traffic flow, is now well entrenched for road users," Quickfall says.
"And there is more industrial land coming on stream in Cambridge, particularly at Hautapu and at Hamilton Airport which means there is somewhere for industrial activity to go."
Carter's Flat was unofficially named after William Kennedy 'King' Carter who operated a coach service and built his house and stables there in the late 1870s.
By the early 1900s, the land was used for farming before changing to industrial development. Carter's Flat and the surrounding area also includes a number of culturally significant sites.
People can give feedback on the proposed Plan Change 19 until October 6. Submissions can be made online.