The Sydney Plan
The Sydney Plan replaces the Greater Sydney Region Plan: A Metropolis of Three Cities (2018) and the 5 district plans, establishing a single strategic planning framework for the Sydney region.
The Greater Sydney Region Plan was released in 2018 by the former Greater Sydney Commission. Since then, the NSW Government has committed to streamlining the planning system and brought all planning functions into one agency, the Department of Planning, Housing and Infrastructure.
As the first of a new generation of regional plans identified in the NSW State Land Use Plan, the Sydney Plan supports a simpler and more consistent approach to strategic planning across NSW. It recognises Sydney as one interconnected global city, reflecting how people, businesses and freight networks increasingly operate across the metropolitan area.
Unlike previous plans, the Sydney Plan focuses on clear outcomes and assigns actions only to local councils and the Department of Planning, Housing and Infrastructure, providing greater accountability and oversight of delivery.
Infrastructure planning and coordination are now undertaken through the NSW Government's Urban Development Program (UDP) and Infrastructure Opportunities Plans (IOPs), with the IOP included as technical appendix C to the plan. Read Appendix C – Infrastructure opportunities plan (PDF, 1.6 MB)
The Sydney Plan is also supported by a series of technical appendices, including Housing and Employment Guidance for each council area, which provides evidence, analysis and direction to support local planning for housing, jobs and infrastructure.
The Sydney Region is a planning region that has been declared under the Environmental Planning and Assessment Act 1979 (EP&A Act) by Ministerial Order. It replaces the former Six Cities Region and establishes a single regional planning framework for Sydney.
The Sydney Region includes the same 33 local government areas previously covered by the former Greater Sydney Region Plan: A Metropolis of Three Cities (2018), including Bayside, Blacktown, Blue Mountains, Burwood, Camden, Campbelltown, Canada Bay, Canterbury-Bankstown, Cumberland, Fairfield, Georges River, Hawkesbury, Hornsby, Hunters Hill, Inner West, Ku-ring-gai, Lane Cove, Liverpool, Mosman, North Sydney, Northern Beaches, Parramatta, Penrith, Randwick, Ryde, Strathfield, Sutherland Shire, Sydney, The Hills Shire, Waverley, Willoughby, Wollondilly, Woollahra.
The declaration of the Sydney Region forms part of broader reforms to NSW's strategic planning system and enabled the making of the Sydney Plan.
The NSW Government has introduced significant reforms to address housing supply in Sydney, improve housing choice, and streamline the planning process.
Key initiatives include:
- The 5-year housing targets
- Low and mid-rise housing policy
- Transport Oriented Development Program
- Infill Affordable Housing Provisions
- Housing Delivery Authority
- Development Coordination Authority
- The Planning System Reforms Act 2025.
The Sydney Plan complements these reforms and provides further direction for housing and other land use strategies to support short, medium and long-term housing growth.
The Sydney Plan provides further guidance on:
- Housing targets (2024 to 2029) for each local government area, supporting the NSW Government’s commitment under the National Housing Accord.
- Feasible housing capacity, requiring councils to plan for 30 years of feasible housing capacity within their planning controls at any given time.
- Housing diversity profiles and 2026 estimates, offering guidance on how different areas may evolve over time through an appropriate mix of detached, low-rise, mid-rise and high-rise housing. Councils will need to undertake their own analyses to establish which profile best represents their local government area.
- Housing growth areas, identifying where councils should focus strategic planning efforts to increase housing supply in the short and medium term.
The plan also promotes the delivery of affordable housing across Sydney through a range of mechanisms, including policy, direct delivery from the NSW Government, and in collecting contributions.
Rental stress is evident in every Local Government Area (LGA) in Sydney. An affordable housing contributions scheme is a key local strategic policy to boost affordable rental housing supply through monetary, floorspace and/or land contributions.
In recent years, the Department has worked with several Sydney councils, including the City of Sydney, Willoughby, Canada Bay, Randwick, Northern Beaches, Penrith and Waverley, to implement such schemes. To further support this process, the Department will provide a toolkit to help fast-track the preparation and adoption by Sydney councils.
Councils that do not already have a scheme in place are not expected to deliver one until after 2029.
The Urban Development Program (UDP) coordinates the planning and prioritisation of infrastructure needed to support housing growth across Sydney, including roads, schools, health facilities and open space. It tracks and forecasts housing supply, identifies gaps in development-ready land and highlights risks to timely delivery.
The UDP also publishes Infrastructure Opportunities Plans (IOPs) to guide NSW Government budget decisions and agency investment in infrastructure that supports the delivery of new homes in regions where the Housing and Productivity Contribution is collected. It also identifies a list of state and regional infrastructure projects that are eligible to be delivered as works-in-kind under the Housing and Productivity Contribution Works-in-Kind Guideline to support housing delivery.
The first Infrastructure Opportunities Plan for Sydney is included as a technical appendix to the Sydney Plan. It will be updated annually to reflect current infrastructure needs. Councils will use these plans to align their local infrastructure programs with state priorities, ensuring coordinated and timely infrastructure delivery.
The Sydney Plan identifies that centres play an important role across the region, providing both employment opportunities and housing, while creating vibrant places.
To support the establishment of the right balance of land uses, the Sydney Plan provides clear guidance for each CBD, major and activity centre on the employment and housing opportunities in these centres and outside of them in each local government area.
These are intended to guide councils when they are undertaking precinct-level centre strategic planning, generally reflective of the centres’ role in Sydney. Land use balance should be considered alongside guidance provided throughout the Sydney Plan, including centres types and the Housing and Employment Guidance (appendix D). Read Appendix D – Housing and employment guidance (PDF, 28.6 MB)
Additionally, a Centres Framework has been provided in the State Land Use Plan that provides additional guidance on planning for centres, including balancing a mix of land uses.
The Sydney Plan provides employment guidance to support strategic planning and investment decisions across the Sydney region, including:
- Jobs targets for the Sydney region, Urban Development Program (UDP) areas, local government areas and key centres. These targets identify the expectations around what is likely, achievable and desirable in terms of employment across Sydney.
- Guidance for employment growth for each local government area and key centres in the Housing and Employment Guidance (Appendix D). This includes a breakdown of employment categories and industries of focus, to support an equitable distribution of a range of jobs across Sydney.
The Housing and Employment Guidance technical appendix identifies housing and employment growth to 2046 for each local government area in the Sydney region. It highlights key centres and areas where councils should focus planning efforts to support jobs and economic development. It also provides local housing and employment profiles, along with housing and jobs targets, to inform local strategic planning.
The technical appendix should be read alongside the Sydney Plan and used by councils to implement the directions from the Plan in their local strategic planning.
Employment guidance reflects an economic vision where people live closer to their workplaces and can access jobs more easily, while remaining realistic and achievable. The jobs guidance intends to facilitate strategic planning, enable businesses to make investment decisions and target specific workforce, and support the distribution of well-located jobs.
The Sydney Plan applies the Statewide Policy for Industrial Lands (the policy) by categorising all industrial lands in the Sydney region. It also requires planning proposals to be consistent with the policy. For more information read Employment lands
Over 160 requests for recategorisation were received as part of the public exhibition of the draft Plan. All submissions were considered on their merits and the application of the principles and metrics established with the Policy. In response to recategorisation requests, around 75% of recategorisation requests were approved. For more information on the detailed consideration given to recategorisation requests, please refer to the public exhibition outcomes report.
The Department will undertake a review of categorisation following 12 months of finalisation of the Sydney Plan, to make sure the categorisation is delivering its strategic intent. Landowners, developers and stakeholders will have an opportunity to be involved in the 12-month review. Future communications will be released closer to the review period.
The Sydney Plan identifies the importance of improving the supply of development-ready industrial land. This includes the identification of Employment Land Investigation Areas that have the potential to become development ready with active management. The focus of Employment Land Investigation Areas is to unlock industrial employment land supply in the areas where it is needed the most. These are areas where the Department will work with councils and government agencies on the coordination of key infrastructure needs and the resolution of other constraints.
The areas identified fall into 3 potential assistance timelines:
- near-term (0-5 years)
- medium-term (6-10 years)
- long-term (11-20 years).
These timelines refer to the stages where the ELDP intends to play an active role in coordinating the delivery of enabling infrastructure and resolving other constraints to ensure land can be developed.
The areas identified for near-term priority investigation are Camellia-Rosehill (Parramatta LGA), Marsden Park Business Park (Blacktown LGA), Annangrove (The Hills LGA), Box Hill Business Park (The Hills LGA) and Glenlee (Campbelltown/Camden).
The identification of Employment Land Investigation Areas is a targeted approach and does not include all areas that will contribute to the supply of industrial employment lands. For example, infrastructure delivery in the Western Sydney Aerotropolis is being coordinated by Infrastructure New South Wales.
The plan recognises the varied and important landscapes, natural assets and sensitive environments across the Sydney region.
The Sydney Plan promotes resilient and sustainable land use planning through directing growth to appropriate locations, reducing pressure on environmentally sensitive areas, and incorporating urban design measures that help manage natural hazards such as flooding, bushfires and the impacts of climate change.
The plan further supports environmental protection by strengthening Sydney’s Blue-Green Grid, which contributes to biodiversity, urban cooling and community health.
The Sydney Plan draws on a range of data sources and climate modelling, especially to analyse likely scenarios and impacts of climate change on the region.
It leverages the evidence and aligns with the directions of the guidance and documents exhibited alongside the Climate Change and Natural Hazards State Environmental Planning Policy Explanation of Intended Effect.
Understanding the challenges and risks of a warming climate has influenced many strategic directions in the plan, including:
- the proposed draft urban growth area and sustainable settlement pattern
- areas proposed for housing growth
- directions on managing natural hazards, including heat
- directions for open space, tree canopy and the blue-green grid.
The plan has set a target to increase tree canopy to 40% by 2046, recognising that health and cooling benefits begin to be realised when canopy levels reach 30%. As part of this, councils will be responsible for developing and implementing a strategic approach to increase tree canopy across their areas. The Department will continue to support councils through guidance and grant programs to support both planning and delivery. The Department is preparing an Urban Greening Guide for councils, industry and stakeholders to support early consideration of urban greening in land use planning.
Sydney region councils are expected to align their local planning with the priorities and policy responses in the Sydney Plan. This will be done through their local strategic planning and Local Environmental Plans (LEP) to ensure consistency in land use planning across Sydney.
For now, councils should continue implementing their existing Local Strategic Planning Statements (LSPSs), local strategies and the Minister’s Statement of Expectations. This means updating their local environment plans to permit more housing, jobs and infrastructure that will facilitate growth.
Sydney councils should begin reviewing their local strategic plans from mid-2027 to ensure alignment with the Sydney Plan. They should also start implementing the actions from the Sydney Plan based on the timeframes outlined within the Sydney Plan. Appendix B outlines which actions are required to be completed in preparation of updating local strategic plans. Further guidance on any changes to the LSPS framework will be provided to councils at that time. Read Appendix B – Actions summary and guidance (PDF, 5.2 MB)
During 2019 and 2020, Sydney councils reviewed their Local Environmental Plans and developed their first Local Strategic Planning Statements
The draft Plan was open for public feedback during the exhibition period from 10 December 2025 to 27 February 2026. Public consultation on the draft Sydney Plan has now closed. Thank you to everyone who provided feedback. Your insights have helped shape the final plan.
State Plan
The State Plan is the NSW Government's first statewide land use plan that establishes a clear and consistent framework to guide strategic planning across NSW over the next 20 years.
The State Plan introduces:
- A simpler three-tier planning system comprising the State Plan, regional plans and local plans.
- Seven statewide land use priorities that guide planning at the state, regional and local levels: Aboriginal Outcomes, Housed, Prosperous, Connected, Resilient, Liveable and Coordinated.
- Four planning regions: Sydney, Illawarra Shoalhaven, Central Coast and Lower Hunter, and Regional NSW.
- A process for updating strategic plans between formal review cycles, ensuring the planning system can respond to changing circumstances while maintaining a clear and consistent long-term direction.
- New land use planning and system policies, including the Feasible Housing Capacity Policy, Statewide Industrial Lands Policy, Centres Framework, as well as the recently updated LEP Making Guidelines and 9.1 Directions.
The State Plan establishes the statewide priorities that guide strategic planning across NSW.
The Sydney Plan is the first regional plan prepared under the new framework and applies the State Plan's priorities to the unique opportunities and challenges of metropolitan Sydney.
The State Plan is supported by a suite of technical appendices that provide detailed guidance to support consistent implementation across NSW. These include the NSW Statewide Industrial Lands Policy, which provides a consistent statewide approach to protecting, managing and planning industrial lands, and the NSW Centres Framework, which establishes a consistent approach to identifying, categorising and planning centres across the State.
Together, the State Plan, region plans and supporting technical guidance provide a coordinated framework to support housing, jobs, infrastructure and environmental outcomes across NSW.
The NSW Centres Framework is a technical appendix to the State Plan that establishes a consistent statewide approach to planning centres across NSW.
The framework provides a common basis for identifying and categorising centres in region plans and local strategic planning which:
- identifies the 4 centre typologies used across NSW and how they are categorised in region plans
- outlines the strategic role and intent of each centre type
- provides guidance to support planning decisions, including the review of planning controls and consideration of rezonings within centres.
The NSW Centres Framework will be applied through region plans and local strategic planning as the new strategic planning framework is implemented, supporting a more consistent approach to centres planning across NSW.
The Department is currently reviewing the LSPS framework with updated guidance to be released in 2027.
For now, councils should continue implementing their existing Local Strategic Planning Statements (LSPSs), local strategies and the Minister’s Statement of Expectations. This means updating their local environment plans to permit more housing, jobs and infrastructure that will facilitate growth.
Sydney councils should begin reviewing their local strategic plans from mid-2027 to ensure alignment with the Sydney Plan. They should also start implementing the actions from the Sydney Plan based on the timeframes outlined within the Sydney Plan. Appendix B of the Sydney Plan outlines which actions are required to be completed in preparation of updating local strategic plans. Further guidance on any changes to the LSPS framework will be provided to councils in 2027. Read The Sydney Plan – Appendix B – Actions summary and guidance (PDF, 5.2 MB)
Timelines for LSPS updates for councils outside of Sydney will be communicated following the finalisation of the Illawarra Shoalhaven, Central Coast and Lower Hunter and Regional NSW Region Plans.
The State Plan is the foundation of a broader package of strategic planning reforms that provide a more coordinated approach to planning for housing, jobs, infrastructure, transport, industry and the environment across NSW. It establishes the statewide strategic direction for land use planning and the seven statewide land use priorities that are implemented through regional plans and local strategic planning.
As part of these reforms:
- Amendments to the Environmental Planning and Assessment Act 1979 (EP&A Act) commenced, establishing a new streamlined framework for strategic planning across NSW.
- The Sydney Region was declared by Ministerial Order, replacing the former Six Cities Region.
- The Sydney Plan was made as the new long-term strategic plan for metropolitan Sydney, replacing the Greater Sydney Region Plan and district plans.
- The State Land Use Plan was released, establishing statewide land use priorities to guide planning and decision-making across NSW.
- The NSW Statewide Policy for Industrial Lands was released to support the protection, management and delivery of industrial lands needed for jobs, industry and economic growth.
- Technical appendices, including the housing feasibility policy, were published to support implementation of the State Land Use Plan and the Sydney Plan.
Together, these reforms create a clearer and more consistent planning framework that strengthens the links between State, regional and local planning, while supporting the delivery of homes, jobs and infrastructure needed for NSW's future growth.
The Environmental Planning and Assessment Amendment Act 2025 (Amendment Act) updates the Environmental Planning and Assessment Act 1979 (EP&A Act) to support a modernised and more consistent strategic planning framework across NSW.
While the Amendment Act became law in May 2025, key strategic planning provisions commenced on 10 August 2026 to support the implementation of the new framework and the release of the Sydney Plan.
The amendments:
- remove references to the former Six Cities Region and associated cities
- enable the Minister for Planning to declare planning regions by Ministerial Order
- enable the Minister to establish housing targets for regions and local government areas by Ministerial Order
- support a new regional planning framework, including the Sydney Plan and future regional plans across NSW
- provide transitional arrangements to ensure existing regional and district plans remain in force until they are replaced or revoked.
Together, these changes provide the legislative foundation for the Sydney Plan and future regional plans across NSW, creating a simpler, more consistent and more flexible approach to planning for housing, jobs, infrastructure and growth.
Amendments to the EP&A Act enable the Minister to establish housing targets for regions and local government areas by Ministerial Order.
A Housing Targets Order has been released to reaffirm and maintain the current five-year housing targets set for 43 local government areas in the former 6 Cities Region, with targets to be achieved by June 2029. This order does not introduce new housing targets or change existing ones, but ensures they continue to operate under the amended legislation.
Future Ministerial Orders may be issued to set new housing targets for local government areas or regions for periods moving forward.
The first stage of the reforms has been completed through amendments to the Environmental Planning and Assessment Act 1979, the declaration of the Sydney Region, and the release of the Sydney Plan, State Land Use Plan and NSW Industrial Lands Policy.
The NSW Government will continue implementing the new strategic planning framework through:
- Preparing, exhibiting and finalising new region plans for the Illawarra Shoal-Haven Region, Central Coast Lower Hunter and Regional NSW regions.
- Reviewing the Local Strategic Planning Statements (LSPSs) framework and preparing LSPS guidelines.
- Detailed guidance for councils on implementation of key policies, such as the feasible housing capacity policy.
- Establishing monitoring, reporting and benchmarking processes to measure implementation and performance.
Planning regions
The State Plan introduces four new planning regions for NSW.
The new regions will be declared by Ministerial Order following exhibition of region plans for each respective region.
The 4 regions are:
- Sydney – comprising 33 Sydney local government areas – Sydney region is the first region to be declared alongside release of the Sydney Plan in August 2026.
- Illawarra Shoalhaven – to incorporate Wingecarribee LGA into the existing 4 LGAs of the region.
- Central Coast Lower Hunter – a single region comprising 6 LGAs.
- Regional NSW – a single planning region covering 84 LGAs and organised by sub-regions for planning purposes.
These changes will guide the development of new regional plans for these proposed planning regions. The plans will respond to emerging priorities such as housing supply, infrastructure needs, economic development, energy transition and post-mining land use.
The proposed changes to planning regions respond to challenges in NSW planning at the state, regional and local levels. These challenges include:
- differing boundaries across agencies, which make it hard to coordinate planning
- fragmented governance and collaboration, which slows decision-making
- misaligned data and evidence, which reduce planning efficiency
- overlapping and unaligned plans, which lead to confusion and inefficiency
- regions that don’t reflect how communities function
- limited flexibility to respond to emerging challenges
- inconsistent delivery of shared priorities, making long-term outcomes harder to achieve.
The proposed new planning regions aim to better reflect how communities function, improve coordination across government, and support more consistent and effective planning and delivery.
Local priorities will be considered in the development of new region plans by:
- Including subregional profiles and aggregated local evidence in Regional NSW plans.
- Using localised data to inform broader planning responses.
- Engaging councils early so local strategies shape each regional plan from the ground up.
This ensures region plans reflect local needs while aligning with state priorities.
The Department heard from stakeholders in the feedback on the Discussion Paper that the proposed region for Regional NSW is geographically broad and that any new region plan needs to recognise the diversity of regional NSW and the different opportunities and challenges facing councils in the implementation of a region plan.
The Department will explore a more nuanced approach to the structure and content of the Regional NSW Plan. This includes considering how planning for different scales can reflect local characteristics and priorities, while maintaining a clear and consistent statewide strategic framework.
The Department will continue to engage with councils, industry, government agencies and other key stakeholders as the draft Regional NSW Plan is prepared. The community will have an opportunity to provide feedback when the draft plan is released for public exhibition. This is anticipated to be in 2027.
The NSW Government is progressively delivering new region plans across NSW outside Sydney.
The Illawarra Shoalhaven Region Plan is currently on exhibition from 31 July 2026 to 28 September 2026 and is expected to be finalised following consideration of community and stakeholder feedback.
For the Central Coast and Lower Hunter Region and Regional NSW Region, the Department is currently undertaking detailed planning work, including mapping, infrastructure audits and settlement planning to inform the new plans.
The draft Central Coast and Lower Hunter Plan and draft Regional NSW Plan are expected to be released for public exhibition in 2027, aligning with the five-year review cycle for region plans. This additional time will allow further technical analysis, infrastructure planning, prioritisation work and local council priorities to be incorporated into the plans before exhibition.
Once finalised, the new region plans will provide a coordinated long-term framework to guide growth, infrastructure and investment across NSW.
Existing region plans will remain in effect while the new plans are being developed, providing continuity and certainty for communities, councils and industry.
Statewide Policy for Industrial Lands
Industrial land is under increasing pressure from competing land uses. Rising demand, limited supply and population growth mean NSW needs a clear framework to protect and optimise industrial land. The policy ensures land designated for industrial uses is properly planned for and managed.
The Statewide Policy for Industrial Lands:
- supports better coordination between state and local governments
- helps make sure that planning decisions are responsive to the scale and function of each industrial area
- supports government priorities like housing and economic growth.
This is a statewide policy that will apply to industrial lands across NSW, including:
- lands defined by the Department’s Employment Land Development Monitor (ELDM). Note: for the policy, all employment lands will be referred to as “industrial lands”
- industrial land that is not currently monitored through the ELDM but may be monitored in the future.
The Sydney Plan applies the Statewide Policy for Industrial Lands by categorising all industrial lands in the Sydney region (refer to response 6 of the Sydney Plan). Submissions on draft categorisation have been reviewed as part of the finalisation of the Sydney Plan. For more information, refer to the Sydney Plan’s public exhibition outcomes report.
The draft Illawarra Shoalhaven Plan categorises all industrial lands within the Illawarra Shoalhaven region. You can provide feedback on this categorisation as part of your response to the draft Illawarra Shoalhaven Plan via the NSW Planning Portal.
Other industrial lands across NSW will be categorised and exhibited in 2026.
Industrial lands are classified into 3 categories:
- State significant: Critical national and state infrastructure, like international ports, airports or intermodals, and directly linked areas that are crucial to national or state supply chains.
- Regionally significant: Large, diverse areas that are important to a region’s economy, and usually support a wide range of industry and employment.
- Locally significant: Smaller areas serving local business and community needs.
Industrial lands are classified into 3 categories:
- State significant: Critical national and state infrastructure, like international ports, airports or intermodals, and directly linked areas that are crucial to national or state supply chains
- Regionally significant: Large, diverse areas that are important to a region’s economy, and usually support a wide range of industry and employment
- Locally significant: Smaller areas serving local business and community needs.
The policy identifies 3 categories of industrial lands based on:
- proximity to major infrastructure
- economic contribution and output
- employment generation
- scale
- strategic importance.
The process uses data and consultation between the Department, other government agencies, local councils and stakeholders, and applies the principles and metrics of categorisation at a region level.
Categorisation helps councils and government apply the appropriate level of protection, investment or flexibility for each site. Categorisation determines how lands are protected from encroachment and the level of land use flexibility that may be permitted for alternative uses, for example:
- State significant: strong protection against encroachment from incompatible uses, and alternative uses are not supported unless through a state directive.
- Regionally significant: strong protection against encroachment from incompatible uses while providing a pathway for alternative employment uses. Non-employment uses are not supported unless through a state directive.
- Locally significant: recognises the importance of industrial lands serving local communities and providing a pathway for alternative employment. Where those uses are not viable, non-employment uses may be considered through a strategic planning process and rezoning.
Two technical notes support the policy, providing additional guidance for consideration when implementing the policy:
- Managing industrial lands (technical Note 1) – provides guidance on setting the strategic intent for industrial lands.
- Alternative uses (technical Note 2)– provides guidance on the key matters for consideration when considering proposals for alternative land uses.
The policy recognises industrial lands as critical enablers of housing supply and affordability in NSW. Industrial lands support essential sectors such as construction, manufacturing, logistics and freight, which underpin the housing construction pipeline. By protecting and managing industrial land supply, the policy helps prevent cost pressures that arise when industrial land becomes scarce or expensive - including increased housing prices. This coordinated land use approach ensures jobs and industries are located near homes, supporting both economic growth and affordable housing across NSW.
Councils will play a central role in implementing the policy. They will be responsible for applying the categorisation framework in their local planning, managing competing land uses, and preparing planning proposals consistent with the policy. Councils must balance protecting industrial land with accommodating housing and other community needs, especially on locally significant industrial lands where alternative uses may be appropriate. The policy provides greater certainty and clear processes to help councils coordinate infrastructure and create sustainable employment precincts that support local economies.
Landowners will have clearer direction on how their land can be used now and in the future.
Owners of land classified as state or regionally significant industrial land will generally see strong protection for industrial uses, with limited scope for alternative uses.
Owners of locally significant industrial lands may be able to explore alternative or mixed employment uses, subject to strategic justification and planning processes.
The policy promotes greater use of industrial sites, encouraging innovative, higher productivity uses.
The Retain and Manage Policy established under previous region plans, such as the Greater Sydney Region Plan: A Metropolis of Three Cities (2018), continue to apply until the categorisation has been implemented in the relevant region plan. For example, the Sydney Plan will replace the Greater Sydney Region Plan: A Metropolis of Three Cities (2018) and associated district plans and therefore, the Retain and Manage Policy no longer applies to the Sydney region.
Ministerial Direction Focus area 7: Industry and Employment also continue to apply to any planning proposals seeking land use change for industrial lands.
The Employment Land Development Program (ELDP) is an ongoing initiative by the Department to improve the supply of development-ready employment land, focusing on key industrial sectors, such as freight and logistics.
The program identifies where intervention is needed on state or regionally significant categorised industrial land that may be underutilised but has significant potential for growth.
Other priorities being progressed under the Industrial Lands Action Plan will support the ongoing implementation of the Statewide Policy, including planning and policy interventions and the creation of the ELDP to manage industrial land supply and coordinate infrastructure investment.
More information on the Employment Lands Development program is available on Employment lands.
The draft Statewide Policy for Industrial Lands was on public exhibition on the NSW Planning Portal from 10 December 2025 to 27 February 2026.
The Department consulted councils, relevant state government agencies, industry groups and peak bodies on the policies and priorities in the draft policy. The draft plan was open for public feedback during the exhibition period, providing further opportunity for people to have their say.
The Statewide Policy for Industrial Lands is now a technical appendix of the State Land Use Plan, to be applied consistently across NSW in the development of region plans. Region plans give statutory effect to the Policy by applying categorisation to a region’s industrial lands.
The Sydney Plan is the first region plan to be finalised under the new approach to strategic planning and categorises all industrial land within the Sydney region as state, regionally or locally significant in accordance with the Statewide Policy for Industrial Lands.
For more information on the Policy and the Industrial Lands Action Plan, visit Employment Lands
Feasible Housing Capacity Policy
The Feasible Housing Capacity Policy (the policy) is the NSW Government’s long-term response to the chronic undersupply of housing. It resets the current approach of setting housing targets and planning controls for ‘just enough’ housing capacity to a future where there is an abundance of housing capacity aligned to market demand and housing need.
The policy requires that all local councils with a five-year housing target update their local strategic planning to provide at least 30 years of feasible capacity. The requirement will then become a rolling obligation to ensure an ongoing pipeline of land suitable for housing delivery going forward.
The Department of Housing, Planning and Infrastructure (the Department) will work with councils over the coming two years to develop updated strategic plans that align with the new requirement. This work will occur ahead of the next round of 5-year housing targets, which will be set in the next term of government and commence in 2029-30
The policy will apply to all Local Government Areas (LGAs) where a housing target is set. The requirement for in-scope LGAs will be identified within Region Plans, starting with the release of the final Sydney Plan.
Feasible housing capacity is the amount of theoretical capacity (the total number of homes allowed to be developed under planning controls) that is commercially feasible for the private sector to develop. The capacity is feasible because the costs of land, finance, labour, materials, taxes and other key inputs are less than what the new home will sell for and provide the developer with a reasonable return on investment.
30 years of feasible housing capacity is needed to establish a solid foundation from which NSW can address its historic levels of housing undersupply and respond to shifting levels of demand into the future.
A high volume of capacity is needed, because only a small amount of the capacity will be delivered. Issues such as site fragmentation, connectivity to infrastructure and owner preferences mean that only a small component of the capacity becomes a completed dwelling in a given time period and a significant proportion never gets redeveloped.
The 30-year benchmark is based on analysis of the NSW housing system and other international case studies.
The NSW Productivity and Equality Commission (PEC) and the Department of Planning, Housing and Infrastructure have worked together to develop the Feasible Housing Capacity Policy.
The 30 years of feasible capacity benchmark was identified as part of the PEC report Building more homes where the numbers stack up. In addition to this, the Centre for International Economics has been working with the Department to develop the evidence base for benchmarks.
New Zealand has a 30-year capacity benchmark, while British Columbia has also introduced similar policies to tackle housing affordability in cities like Vancouver. California has also implemented a similar policy.
Alongside a pipeline of 30 years of broadly feasible housing capacity, the five years of realisable capacity is designed to make sure the planning system is more responsive to shorter-term market conditions.
Working in tandem with housing targets, the five-year realisable housing capacity assesses the likelihood of development under expected market conditions. Councils will be required to take actions relevant to their housing market and broader economic conditions to support that feasible housing capacity becoming realisable, with enough to meet their five-year housing target.
The feasible housing capacity policy requirements are not new housing targets. They are new housing performance benchmarks that will support councils to meet their five-year targets and better respond to housing need in their communities. It will ensure that there are more than enough potential housing development opportunities that can be drawn down upon in a LGA at any time.
For too long councils and the Department have planned for ‘just enough’ capacity to meet demand or a target. The 30-year requirement will mean that we move to an environment where we plan for more than enough housing. That way, if there is an economic shock, migration change, or global event that requires a change of direction, the system is set up to deliver more homes in a local area.
The policy will have a two-year implementation phase with the Department working in close partnership with councils. The Department will begin by establishing a strategic methodology for assessing feasibility and will consult with relevant stakeholders.
This work will occur ahead of the next round of five-year housing targets, which will be set in the next term of government and commence in 2029-30.
Feasible housing capacity will only be delivered as housing if it has access to essential infrastructure and services. The NSW Government sequences the delivery of housing and infrastructure via the Urban Development Program, which coordinates the delivery of enabling infrastructure to support new housing.
Moving forward, housing targets will be designed to work in tandem with feasible and realisable capacity. Under the EP&A Act amendments commenced in alignment with the new Sydney Plan and State Land Use Plan, future targets will be declared by the Housing Targets Ministerial Order. Available mechanisms will be used to ensure that LGAs maintain benchmark levels of feasible capacity.
No. This policy does not trigger immediate development or mean that there will be high density everywhere.
The policy will be delivered alongside the Department’s other planning principles and policies. This means that feasible housing capacity will be established in well-connected places close to jobs, services, and infrastructure.
Where a location enables more housing opportunity, it does not require that homes get built or that development happens. What gets built depends on what the market determines, property owner choices, and what can feasibly be built, not just planning rules. Development usually happens gradually, typically over many years and even in areas allowing taller buildings, there will still be a mix of housing types.
The policy will apply alongside other good planning principles. It will not require increased housing capacity in places with elevated levels of hazard risk like flood and bushfire. It will help to rebalance housing opportunity in places that have a lower risk.
Landowners will not be required to sell their homes now or in the future. Property owners can continue to live in, sell, maintain, improve or redevelop their home as the planning rules allow - what happens with their property is entirely up to them. There is no requirement to develop.
The implementation of the policy will occur in stages over the next two years. From 2027, the Department will provide councils with detailed guidance on how to measure and monitor feasible housing capacity. At the same time, the Department will be working to update its own systems and practices to implement the policy.
The policy has been released in the Statewide Land Use Plan Appendix C. Read Appendix C – Feasible Housing Capacity Policy (PDF, 2.8 MB)
More information
For questions about the State Land Use Plan, email nsw-strategic-planning-projects@planning.nsw.gov.au