Implementation plans > Urban growth boundary > What is it?

What is it?

The urban growth boundary (UGB) indicates the long-term limits of urban development and where non-urban values and land uses should prevail in metropolitan Melbourne, including the Mornington Peninsula (see Figure 1). It appears on the maps forming part of planning schemes affected by Melbourne 2030.

Essentially, it follows the existing boundary defined by urban zones and growth strategies for the majority of the urban areas in metropolitan Melbourne, including the Mornington Peninsula. There will be some potential for it to be altered in designated growth areas (see ‘What does it change?’). It may also be applied to other towns and settlements in non-urban areas.

The UGB comes into effect in conjunction with the release of Melbourne 2030 on an interim basis. During the consultation period on Melbourne 2030, submissions on configuration of the UGB may be made to government. Following this consultation period, the Minister for Planning will determine its final location.

Once the UGB has been settled by the Minister, it will be permanent. Modifications will only be considered in designated growth areas following an assessment of housing needs and a review of growth area plans or, if applied to smaller towns and settlements.

Figure 1. Managing urban growth - click for more detail

Why do we need it?

Melbourne 2030 introduces a range of policy directions to provide for a more compact city, minimise speculation on the fringe, and retain open land close to most development areas. This gives rise to the need for a clear policy mechanism to separate urban and rural areas.

Currently, there is no consistent approach for deciding where urban growth can occur and where non-urban values should prevail. To date in metropolitan Melbourne, the boundary separating urban and non-urban areas has been determined by referring to an ad hoc mix of State, regional or local strategy and policy documents, zoning decisions and legislation, all prepared at different times by different authorities and for different purposes. This has led to uncertainty in the minds of decision-makers. It has affected the investment choices of landowners and developers, and raised concerns in the wider community about the long-term direction of urban growth and the erosion of Melbourne’s green wedges.

Earlier planning systems for metropolitan Melbourne included a strategic framework plan that defined the metropolitan urban boundary. In the Dandenong and Yarra Ranges, the Yarra Valley, Westernport and the Mornington Peninsula, government policy statements, strategy plans and legislation restricted urban development to prescribed locations. However, the concept of a metropolitan strategic boundary and a regional approach to urban growth has been eroded over time through the devolution of planning responsibilities to local government and a lack of strategic direction at metropolitan level.

Clear, consistent direction is needed to give greater certainty for decision-makers, investors and the community, and to reduce speculation. This need has been underlined in recent years by recommendations by government advisory groups for a more formal approach to defining an urban/non-urban boundary. In addition, the two rounds of public consultation for Melbourne 2030, All Ears Listening and Moving Forward Together, supported the concept of a more defined edge to metropolitan growth and retaining rural values on the fringe of urban development.

Adoption of the UGB will provide greater predictability in planning at local and regional levels, for governments and infrastructure providers and for investment by the private sector. The UGB supports the more orderly development of land, discourages the unnecessary extension of community infrastructure and helps preserve the important qualities of rural areas.

What does it change?

The delineation of the UGB for metropolitan Melbourne, including the Mornington Peninsula, provides a new and easily understood way of defining where urban growth will be encouraged or not permitted.

It clearly distinguishes land that is designated urban, to be used for housing, industry and commerce, from that which is non-urban. Non-urban land is to be used for activities such as conservation, agriculture, resource development and suitable community infrastructure like airports, water supply and sewage treatment facilities that require large areas of open land.

Once settled by the Minister for Planning after the consultation period, the UGB will be able to be modified only in designated growth areas following a full assessment of housing needs, the implications of providing urban services and the conservation or other values of the land affected (see ‘What is it?’). Proposed planning scheme modifications will be subject to a Ministerial Direction that provides that the opinion of the Minister must first be obtained by a planning authority. Legislation will be developed to underpin this requirement.

The UGB concept can be applied to other settlements that are within metropolitan Melbourne but outside the UGB, and it can be applied in other parts of the State.

What are its implications for local government?

Councils will need to assess the location of the interim UGB and identify any anomalies or transitional cases such as the effect of proposed planning scheme amendments on the UGB (see Action 1 below). Responses will need to be made within the consultation period.

Councils in metropolitan Melbourne should also assess whether other urban areas within their jurisdiction should be subject to the UGB. If so, they should propose appropriate growth boundaries.
Local councils in individual growth areas will need to assess whether the UGB should be modified following a review or preparation of growth area development plans.

Regional councils also have the opportunity to consider whether there is a benefit in defining an UGB for settlements in their municipality.