Mount Alexander Shire's council has stamped its approval on long term planning and economic plans for the township, which councillor Dave Petrusma described as "the next go-ahead place in the shire".

"There are some rezoning matters that are part of this plan, that will see Harcourt grow significantly and ensure its future as a small town and a great place to life in our shire," he said.

The long term plan would encourage new lots on land on the northern edge of town, which could fit 471 people.

That would be nearly double the 538 who lived in the town itself in 2016.

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The council cannot be sure how many people will move into the area by 2036. Its lowest estimate is for 947 people and in 123 new homes.

Its highest estimate is for 1804 people and 476 homes.

The council thinks a population of about 1180 people is most likely and that it should rezone at least two tracts of land north and east of the town to make room for them all.

Another two nearby areas could be set aside if more people want to live in Harcourt.

The council also wants to rezone land in the middle of the township for a grocery store and other businesses, ready for increasing demand as more people move in.

Victoria's planning minister will still need to sign off on the plan, but the council would like to see a planning scheme amendment.

The plan also assumes developers will have to prove how their builds would benefit "critical infrastructure" like community facilities.

Councillor Bronwen Machin said the council was slowly working similar ideas into plans for other major developments.

"To get this in there right from the start will be really good for the people of Harcourt," she said.

Plan Harcourt was developed along with an economic plan to bring tourists into the area to enjoy its landscape, wine and cider.

Council officers said they wanted to balance farmers' needs and a growing township.

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