It will not necessarily go to the highest bidder, as the public authorities look to provide housing for all socioeconomic levels.
The residential development could fit between 75 and 80 sections, while there will be about 20 industrial lots.
The residential land makes up about 65% of the property.
The community board will soon seek expressions of interest from developers who can undertake a residential and commercial subdivision of the land.
Developers may provide some options for the community board about how any affordable, social or emergency housing in the Te Anau area could occur.
Fiordland Community Board chairwoman Sarah Greaney said the board was looking for a developer who would take the needs and wishes of the community into consideration.
"Our aim for some time has been to enable and support the provision of affordable, social and emergency housing," she said.
"We also want to ensure the industrial sections meet the needs of those who might want to buy them."
The single parcel of land for sale comprises two plots at 91 Sandy Brown Rd, with potential for both residential and commercial growth.
The net sale proceeds of the land will be credited to the Luxmore Development Reserve, for allocation by the Fiordland Community Board.
The property will be marketed and sold by Colliers, and the lead agents are Alistair Wood and Doug Reid.
The release to the market is likely to occur about the middle of this month.
The lot comprises 12.67ha.
