The Grootfontein municipality last week allocated 715 plots to ultra-low and low-income earners.
Some of the plots are given for free, while those that fall under the low-income group will be sold at affordable purchase prices.
"Our target is to give people land; there is no way some of the beneficiaries will afford the plots while others that are employed will be charged for service provision," said the Grootfontein constituency councillor Elder Fillipe.
He also added the target group is those in the informal business, the unemployed and the landless.
"We are also in the process of relocating 40 households from Oshandira, a farm outside Grootfontein, who were flooded, as they had their houses in riverbeds," he added.
Meanwhile, the town's mayor Lovisa Iyambo said 518 plots have been allocated in Omulunga extension 9, and 10 in extension 8, as well as a further 97 in Luiperdheuwel.
"Eighty of the plots are allocated to the marginalised community, 208 for residents being relocated from Single Quarters, a further 100 were given to land occupiers, as well as 100 for general applicants," said Iyambo, while adding all plots were fully serviced.
Fillipe said the move to allocate land was also a means to discourage people from land grabbing and lawlessness.
"This is just the beginning; we want to provide land to our people; therefore, residents should be patient while we address their needs," he said.
The event was officiated by the Otjozondjupa governor James Uerikua and Minister of Urban and Rural Development Erastus Uutoni.