There are big questions to answer before a small town's converted into a satellite city for Auckland.

Paerata locals want a satellite city to deliver more than just houses.

Auckland Mayor Phil Goff and Housing Minister Phil Twyford are due to meet this week to discuss a proposed expansion of Paerata, south of Auckland.

The plan would see the town of 200 people explode to a population of nearly half a million.

Pukekohe Citizens and Ratepayers Association chair Ian McDougal wants to see a proposal which sees some of the new residents employed locally.

"There's no plan to have industry big enough for that size of population," he said.

He said there needs to be incentive to move there.

"We've got enough housing areas out here now which are not selling. Putting up houses will not give the people what they want."

Yesterday, Infrastructure New Zealand chief Stephen Selwood was more optimistic about the development, and that Paerata was the best site for the city.

"That triangle from Pukekohe, Papakura, Karaka, was the cheapest but also the strategically easiest to develop."