A developer is proposing to build 20 retirement courtyard homes on Lots 113 and 114 in Campbell Street, Kingscote.
Adelaide builder Alby Scali of Albric Homes said there were still many hurdles to overcome before his plan for the 20 three-bedroom homes could be implemented.
He said issues included power and sewer requirements.
He has held several meetings with council staff and officers.
“There is a real need for this style of accommodation for people retiring off farms and for retirees from the mainland who want to live on the island,” Mr Scali said.
“This beautiful island is an ideal getaway for older people and if the State government makes the Penneshaw ferry crossing part of the national highway it will be cheaper for people to come and go.”
Mr Scali, who also has developed several properties on Brownlow Road and Torrens Street, said the island needed a strategy for development as part of its plans to grow.