The Hometown Foundation, established to help build new self-sustainable communities and regenerate run-down areas, is behind the project.
If given the go-ahead, the town will be built on a 2,000-acre site near the existing village of Rigside and would eventually provide homes for 8,000 people.
Recycled waste would be used to produce energy to heat homes and the town`s transport would be powered by renewable sources, planners said.