Nillumbik's new Council decided to retain Lot 1 in Graysharps Road, Hurstbridge as open space at the Ordinary Council Meeting held on 22 November 2016.
The land had been earmarked as a residential development by the previous Council and was known as Liveable Nillumbik.
Nillumbik Shire Mayor, Councillor Peter Clarke said providing housing opportunities for older people and those with disabilities is important but it needs to be the right location.
"While Council has decided to stop the tender process for the residential development known as Lot 1 Graysharps Road, we are not stopping our commitment to finding housing options for our older residents and families with an adult child with a disability.
"We are keen to keep working with Araluen to find suitable options and Council is currently developing a Shire-wide Housing Strategy which will investigate issues around homes for older people in more detail.
"Supporting residential opportunities for people with disabilities will be a priority to be completed during our term, not just in Hurstbridge but throughout the Shire.
"Now we need to look at this piece of land, and the Graysharps Road precinct as a whole, and prepare a Recreational and Open Space Plan for it - something that we will do with the community."
"I'd like to thank the Liveable Nillumbik Community Reference Group for their contribution."
A future report will be presented to Council regarding the funding requirements for this project.