The idea of establishing a special horse training and equine precinct in historic York will be assessed by the State Government land developer LandCorp.
Planning and Infrastructure minister Alannah MacTiernan said the concept revolved around York's picturesque racetrack, where a jockey club was formed in 1834.
"Situated between the Avon River and the foot of Mount Bakewell, the heritage listed racecourse is said to be the oldest operating inland track in Australia," Ms MacTiernan said.
York racecourse comprises just over 35ha of high quality land capable of being developed for a range of horse-related activities.
"The concept for York is for an equine-based facility supporting racing, pacing, horse owners and trainers, pony clubs, equestrian, riding for the disabled, carriage societies, endurance riding and other associated uses," the Minister said.
York Shire commissioner Gavan Troy said a number of peak groups associated with the equine industry supported the potential development.
"Significantly, the York Trotting Club and the York-Beverley Turf Club favour co-locating their facilities at the historic racetrack site," Mr Troy said.
"Adjacent to the racecourse, the Shire has identified a further 283ha of freehold land and reserves which could also cater for equestrian activities."
Ms MacTiernan said urbanisation was putting increasing pressures on Perth-based horse owners and trainers.
"LandCorp has considerable experience in assessing multi-faceted sustainable developments and would bring an understanding of what is required from all parties to deliver a successful result," she said.
Mr Troy said the shire had established an Equine Community Reference Group to assist with the planning and development of the proposal.
