The government paper sets out plans for more affordable housing, a new road to by-pass the centre of Ballasalla and the development of schools to meet a growing population.
Dorset County Council had originally planned to build a by-pass through the centre of the village along the disused railway trackbed in the early 1970s.
It includes proposals for a new by-pass in Ballasalla to divert south-bound traffic away from the village centre, through to Balthane Industrial Estate.