After sitting dormant for almost nine years there's movement once again on the old Parkes hospital site.

Earthworks have begun to make way for the start of stage one of what is now called the Rose Street Subdivision.

Overall it will include 32 residential lots, all given the greenlight two years ago when the development application came before Parkes Shire Council.

The land fronts Rose, Coleman and Ainsworth streets.

The project is scheduled to begin in October, however council is undertaking some early works such as site establishment, casting of retaining wall components and stock piling of suitable fill for the new development.

There will be increased activity in the area, including vehicle movements near and within the site.

Stage one will create nine initial lots and provide servicing for future stages of the housing subdivision.

Stage one is estimated to be finished by 30 March next year.

"We appreciate your patience and understanding as we work to develop this vacant land into residential lots," council said in its notice on the project.

"We are committed to keeping the community informed through the construction process and will provide updates as the project progresses."

The demolition of the former 110-year-old Parkes hospital was completed just before Christmas in 2016, taking four months.

The two community health buildings were retained on the site and converted into the Central West Family Day Care facility and head office (facing Coleman Street), and a community centre (facing Rose Street).