Council staff have reviewed the Bathurst Regional Local Environment Plan (LEP) and recommended health services facilities be allowed on land zone RE2 Private Recreation Zone.

The review followed a planning proposal submitted by Anthony Daintith Town Planning to establish a physiotherapy business at Site 3, 45 Mitre Street (formerly Pollett's Martial Arts).

The Western Advocate understands an existing Bathurst physiotherapy business is seeking to relocate to Mitre Street.

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A report to councillors by environmental planning and building services director Neil Southorn said council's review of health facilities found that the current rules prohibiting health services on land zoned RE2 was the only planning impediment to establishing a health precinct near the hospital.

He recommended councillors approve the change and said two other RE2-zoned sites near the hospital - Bathurst PCYC and the Ten Pin Bowling Centre - might also "offer opportunities for other new health services to locate close to Bathurst Base Hospital into the future if redevelopment of these sites was sought".

The new Bathurst ambulance station on Commonwealth Street also stands in the proposed health precinct.

"There are no environmental or planning grounds why the proposal should not proceed," the report states.

"The proposal ensures that lands in close proximity to the hospital are able to support new health services facilities, subject to development consent."

Councillors have approved the planning change and it will now be forwarded to the NSW Department of Planning, Industry and Environment to be gazetted.

The RE2 Private Recreation Zone applies to three other local sites - the former St Pat's sporting complex on Gilmour Street, the greyhound racing track on Upfold Street and a dwelling on Havannah Street.