A vacant block in Barton known for being a habitat for two critically endangered species of flora and fauna is being considered for development by the federal government.

The block, on the corner of Sydney Avenue and National Circuit, is home to the golden sun moth and natural temperate grasslands of the south eastern highlands, both designated matters of national environmental significance.

Kingston Barton Residents Group members from left, resident Nancy Waites, Friends of Grasslands' John Fitz Gerald and Margaret Ning, and resident Janet Hughes are fighting to keep the site a conservation area. Credit:Jamila Toderas

A large sign at the site reads, "The National Capital Authority has taken specific action to protect and manage the site during development of the York Park area".

But now, the Department of Finance is seeking permission from the Department of Environment and Energy to clear and then sell the block, by proposing the environmental provisions "be deleted", according to a summary of a report on the National Capital Authority website.