An independent panel - appointed to advise Hazel Blears, the Secretary of State for Communities and Local Government - made the recommendations as changes to the draft South West Regional Spatial Strategy (RSS).
Once approved, the RSS will become the overarching development document governing the amount, distribution, nature and pace of development and change in Dorset and the South West over the next 20 years.
The recommendations are made in the Report of the Panel which conducted an Examination in Public of the draft RSS last year.
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It has, however, also supported transportation infrastructure proposals put forward by the local authorities for both the South East Dorset and Dorchester/Weymouth areas.
The 66,000 new dwellings represent about 3,300 each year - 12,000 more than originally proposed, representing an extra 600 each year.
In an initial response to the panel report, deputy leader of Dorset County Council, Hilary Cox said: "These recommendations are not unexpected, given the Government's widely publicised policy to build thousands of new houses across the South West and South East of England.
"We will need time to consider the implications of the proposals. Excessive growth cannot be justified, especially if it threatens the irreplaceable natural environment of Dorset. However, we mustn't forget that new housing can be a benefit if it gives people unable to afford a home the chance to find somewhere decent to live.
Cllr Nick King, cabinet member for Bournemouth Borough Council, responded: "We are very disappointed with the panel's conclusions, especially those proposing the loss of North Bournemouth's green belt. The panel appear to have failed to recognise the significant value of this area. This is made much worse by the rest of Bournemouth also having to accept higher development rates in the future than we had reluctantly proposed at the Inquiry."
(JM)
