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Policies and initiatives > Direction 3. Networks with the regional cities > Policy 3.2

Policy 3.2 – Control development in rural areas to protect agriculture and avoid inappropriate rural residential development

Each year, rural residential development in the area covered by the ‘network cities’ concept (including metropolitan Melbourne) provides some 4 per cent of all new housing development. At last estimate, there were between 60,000 and 80,000 vacant lots in the region’s rural areas. Many are part of active agricultural units but could be sold off separately. In the metropolitan area alone, this type of development accounts for about 3 per cent of new housing. Over time, Melbourne 2030 proposes to reduce the proportion of new housing development provided in rural areas in order to encourage consolidation into existing settlements where the investment in physical and community infrastructure and services has already been made.

Future planning for rural residential development will avoid or significantly reduce adverse economic, social and environmental impacts. Rural residential development should:

  • maintain the long-term sustainable use and management of existing natural resource attributes, in activities such as agricultural production
  • protect existing environmental qualities, such as water quality, native vegetation, biodiversity and habitat
  • minimise or avoid short-term and long-term property servicing costs carried by local and State governments.

Existing small lots in rural areas, where the neighbouring uses are predominantly for natural resource extraction or production, will be discouraged from use for rural living or other incompatible uses. Such lots should be reduced in number through lot consolidation.

33. Significant agricultural resources

Figure 33. Significant agricultural resources - click for more detail

Initiatives

3.2.1 Complete the review of rural zones and amend the zone provisions to provide an improved framework to implement State and local policy for the management of agriculture and other natural resource-based uses
3.2.2 Investigate ways to discourage development of isolated small lots in rural zones and to encourage consolidation of existing lots
3.2.3 Amend Ministerial Direction No. 6 (Rural Residential Development) so that it also applies to all proposals for rezoning of land that would create lot sizes greater than two hectares and less than eight hectares, and include improved performance standards for limiting natural resource impacts, environmental impacts, and servicing and infrastructure requirements
3.2.4 Update current policies on State and Commonwealth-funded education, health and public transprt services to rural living developments to reflect Melbourne 2030 policies.
3.2.5 Work with local councils to update relevant planning scheme provisions consistent with revised Ministerial Direction No. 6 (Rural Residential Development)