Design guidelines have been developed by Baw Baw Shire to manage the integration of new residential developments with existing low density residential areas.
The guidelines will be used as a guide for designers, planners and developers.
A report to council said there would be situations in urban growth areas of Warragul and Drouin where new residential development will adjoin existing low density residential areas, particularly in the north-west of Drouin and south of Warragul.
"When new standard-density residential lots are developed next to existing low density residential lots there are amenity impacts on the existing residents.
"Impacts include new boundary fences, noises from new neighbours and nearby traffic, overlooking and in some instances shadowing of private open space from new buildings and loss of rural views.
"The design and development of new residential lots can be controlled to help manage amenity-related issues," the report.
Councillors were told residents in low density areas raised concerns about amenity impacts of new development when the Warragul and Drouin precinct structure plans were exhibited.
The guidelines state that in some instances, new development in urban growth areas may have positive impacts on the amenity of low density residential neighbourhoods, particularly through improved access to path connections, shopping facilities, public transport and public open space.