THE full cost of cleaning up the Maribyrnong Defence site, pictured, for residential housing and what will happen to contaminated soil is still being considered.

A list of 120 chemicals used at the former munitions factory for about 100 years was tabled in federal parliament last month. The list includes a number of carcinogens, such as benzene and trichloroethylene. Other harmful substances include mercury and lead acetate.

The 128-hectare site will be handed over to the state government when a clean-up is completed and it will be the site for about 3000 homes. Soil remediation could take at least three years

The Department of Defence said in a written statement responding to questions from The Mail that it was working on a "remediation action plan", which would include a proposed works schedule, and cost estimates for remediation works.

It said the cost would "be reviewed as required".

"Defence is in the process of determining the nature and extent of contamination at the Defence site [at] Maribyrnong and the options for remediation and disposal."

VicUrban urban revitalisation manager Dominic Arcaro said remediation was the sole responsibility of the Department of Defence.

A blow-out in remediation costs would not necessarily be passed onto homebuyers.

"The market price of homes, when the site is ultimately developed, will be determined by the type of housing provided and the market demand - not by costs incurred by the Commonwealth to remediate the land so it is fit for development."

Environmental Protection Authority spokeswoman Kate Gittings said the minimum remediation standards were dependant on what the final use of the site is.

"The National Environment Protection (Assessment of Site Contamination) Measure Act guides this process.

"Any development of the Defence site will need assurance that it is suitable for its intended use and that it does not have an adverse impact on surrounding areas and the environment."

In 2006, the EPA moved to quash residents' concerns that Defence land next to Edgewater and Waterford Green estates was contaminated with heavy metals that could have leached into the river. The EPA said then that water and sediment monitoring showed "insignificant" impacts from industrial uses.

Ben Ruse, spokesman for federal MP for Maribyrnong Bill Shorten, said: "This site offers great opportunities for the area and the chance for Vicurban to build new housing while preserving the area's environmental value of the area."