The State Government-appointed panel sat over five days to consider the application from developer De Group Pty Ltd to rezone the 26-hectare Bradmill precinct for residential and commercial use.

If it gets the nod, De Group plans to build 1000 homes, ranging from low-rise dwellings close to existing houses on Francis Street, through to four- and six-storey houses near a neighbourhood centre, which will include shops, a medical centre and library.

It could be weeks before a decision is made on the application.

Maribyrnong Council received 18 submissions when the plan was put to the public. Several were from nearby businesses objecting to loss of an "active" industrial site.

Two Government departments also objected. The Department of Innovation, Industry and Regional Development said the site was part of a key transport area and a residential development would create fewer jobs, while the Environment Protection Authority raised concerns about the site's proximity to the Brooklyn industrial estate.

The EPA submission said it had received more than 1200 pollution reports from Yarraville residents since 2006.

The precinct is bound by Francis Street to the north, McIvor Reserve to the east and the Newport railway line to the south-west.

De Group managing director Paul Delutis said on-site works would begin about 18 months after approval of the rezoning application.

He said the development would transform Francis Street from a truck route to a residential area and improve quality of life for Yarraville residents.

Preliminary tests from 500 drill holes and water table assessment had shown the site was not as severely contaminated as had been predicted.

Maribyrnong Mayor Michael Clarke said it was an exciting development that had "overwhelming support from the community".