The Australian Defence Force's housing provider has revised its controversial plan for a housing project at Lee Point, in Darwin's northern suburbs, following community pushback.

Defence Housing Australia (DHA) launched its latest version of the master plan for the site today, in response to concerns about the impact on biodiversity and sacred sites.

DHA managing director Andrew Jaggers said while the site boundaries have not changed, the level of development will be reduced and conservation spaces increased.

"We understand Lee Point is an important site for many people," he told 105.7 ABC Darwin.

"People have strong views around housing and environmental responsibility, and Aboriginal culture and heritage as well."

Under the new plan, several "bush blocks" between Alderham Road and the Lee Point dam will not be built, while 22 hectares will be set aside for conservation.

With two AFL-size football ovals also proposed in the new plan, Mr Jaggers says up to 50 per cent of the 132-hectare site will be reserved for the community or environment.

"In launching this master plan, we think we have achieved that balance, and we are going to be talking with the community further about it," he said.

DHA also said it had secured 500 hectares of land near Litchfield National Park to provide habitation and conservation efforts for the Gouldian finch, which has inhabited Lee Point.

Swift opposition to 'shocking' plan

Lorraine Williams, a Larrakia woman who has long fought against the development at Lee Point, said the changes to the proposal are negligible.

"The masterplan itself to me is quite shocking, there's not many changes," she said.

She says while DHA are planning to remove some artefacts from the site, the organisation is overlooking the cultural significance of the area.

"They've been very condescending in the way they've engaged with Larrakia people," she said.

"The land itself is what holds the culture and the knowledge and the history of our people, the plants and animals hold that, that's not being taken into consideration."

Deputy Opposition Leader Ed Smelt welcomed the removal of bush blocks and the community consultations but said Labor still supports a moratorium on the development.

He said the proposal, which includes 200 defence homes and 600 private properties, would only make a small dent in Darwin's housing and homelessness woes.

"The new builds at Lee Point won't be affordable housing, there's only defence housing or private housing," he said.

Territory Labor previously supported the Lee Point development but changed their stance in March this year, citing community feedback about the project.

Approvals still needed as plan opens for feedback

While the new Lee Point Masterplan will be subject to development permit approvals, Mr Jaggers insisted development at Lee Point is well underway.

"We're constructing five houses as we speak that should be finished closer to the end of this financial year," he said.

Mr Jaggers says DHA will continue to consult with stakeholders about the development, although an exact timeline for the project is still unclear.

"We'll consult with key interest groups later this year and then do some consultation on the master plan next year with a view to settling the construction program," he said.

While plenty of stakeholders including the CLP government and some Larrakia custodians have welcomed the development, opposition remains steadfast.

 Earlier this year, the Friends of Lee Point organisation launched a campaign to build the defence housing at Berrimah instead of on Darwin's north coast.