THE 40 hectare Quarry Hill Golf Course will remain after the City of Greater Bendigo decided not to investigate it for future residential growth.
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The city removed the golf course from its Residential Strategy on Monday, which councillors will consider at Wednesday night's ordinary meeting.
Quarry Hill Golf Club treasurer Sandra Davey said the decision gave the club certainty as it looked to upgrade the course.
"We're waiting to re-address a long-term lease on the course, to allow us to develop the area as a golfing precinct," she said.
"The area could be developed into an 18-hole, 3 par course with a driving range to attract more members to golf.
"It's a great area, protecting open spaces for future generations is the right thing to do."
The council had previously labeled the golf course, which is Department of Environment and Primary Industries land, as an investigation area for its housing strategy.
The land is available for a range of recreational uses, as local residents regularly walk their dogs and cycle through the grounds.
City of Greater Bendigo councillor James Williams met with golf club members on Monday.
He said the council could identify the area as a green wedge zone.
"There were concerns that this could be another land grab from the city," Cr Williams said.
"People use this land extensively for recreation."
He said there could be further investigation into private land alongside the golf course, which could be open for residential development. The council could investigate whether all services can be supplied to the area.