Infrastructure is being created for a new settlement to be built on Auckland's northern outskirts.

Contracting and development business Fulton Hogan is preparing the site ready for the creation of a new 3500-residential suburb and town centre south-west of Orewa.

Warren Frogley, marketing consultant for the developers, said earthworks were now well under way to create the first and second stages of Auckland's newest suburb, to be called Milldale.

Millwater this month. (Photo \ Doug Sherring)

Roads have been formed and building platforms are being created to release the first house lots in stages around the middle of next year, he said.

The new settlement is across State Highway One from Millwater, the 3000-plus suburb developed by WFH, a joint venture with Fulton Hogan. Millwater is now nearing completion.

Milldale is also being developed by Fulton Hogan.

"The name Milldale derives from the Kauri that was milled from the land in the early 1800's, as far inland as Wainui," Fulton Hogan says. "The development is overlooked by Mt Pleasant to the west, bordered by Wainui Road and Orewa River to the north, and Pine Valley Rd and Weiti River to the south. The land between forms a natural valley, or dale.

"As a progression from Millwater, many synergies exist between the two developments, from an historical and planning point of view - Milldale was an obvious choice, rolls off the tongue well and creates an obvious link to one of Auckland's most successful and popular residential developments."

Frogley said work building first homes should start in the next year.

"There will be high design standards required, just as there have been at Millwater. As WFH finishes Millwater, Milldale will start," he said.

The aim is to ensure a steady supply of land is available to approved building companies and Frogley said that would provide much-needed new homes to Auckland buyers.

A new town centre is also planned for the master-planned Milldale, with green areas and waterways, he said. Residences around Milldale's centre would be higher density, fanning out further to mid to lower density, Frogley said.

Todd Property also wants to build a new settlement in the area but on the coast. It has been in the Environment Court in the last few weeks over its $1.4b plans to build 750 to 1000 new residences at Okura, across State Highway One from Milldale.

Evan Davies at Long Bay. (Photo \ Brett Phibbs)

Todd owns the 130ha site which is outside Auckland's urban boundary. The land is north of Todd's 2000-residence Long Bay project, where Todd Property chief executive Evan Davies says more than 400 residences are already up. But Todd wants its Okura land included within city boundaries so it can build scale

Frogley said Milldale would have natural features which would be enhanced, including as a long stand of Totora trees beside the origins of the Weiti River.

Significant infrastructure improvements have been made in the area to cater for its growing population, he said.

"Looking to the future, expansion is being made to water, power and broadband services. Improvements to roading and public transport are underway, with more planned," he said, citing new industrial, commercial and retail areas.

More than 3000 residences are at Millwater. (Photo \ Doug Sherring)

A motorway interchange was opened two years ago for traffic to get on and off at Millwater.

Frogley said that would also serve the new Milldale community. That interchange was built and paid for by a partnership between WFH, responsible for the new residential development at Millwater, and Highgate Commercial, developers of the Highgate Business Park occupying the land between Wainui Rd and State Highway 1.

The new ramps had helped ease congestion at Silverdale and Orewa, he said, as well as allowing the expansion of Millwater and the release of more sections there as part of the consent requirement, also providing access into the newly created business park.