Inner West Council Advances Planning Changes to Speed Up Development
Inner West Council is progressing with a combination of zoning changes and planning reforms aimed at increasing housing supply and addressing development bottlenecks. These changes come partly in response to the NSW Government’s Transport Oriented Development (TOD) Program, which has identified several Inner West precincts for new planning controls near public transport infrastructure.
What Is the TOD Program?
The TOD Program is a state-led initiative to encourage higher-density residential and mixed-use development within 400 metres of 37 selected metro and rail stations across Greater Sydney and parts of regional NSW. It aims to boost housing supply by leveraging existing transport infrastructure and supporting walkable, connected communities.
In the Inner West local government area, the TOD Program applies to specific precincts including Ashfield, Croydon, Dulwich Hill, and Marrickville. These locations have been earmarked for state-led rezonings unless Council finalises its own compliant plans by 31 January 2025. For example, in Croydon, the NSW Government has already announced that it will implement TOD controls under the State Environmental Planning Policy (SEPP).
Zoning for Higher-Density Development
In response, Inner West Council is finalising its own planning controls, with public exhibition of a new Local Environment Plan (LEP) scheduled for April 2025. Council argues that the six-storey development standard used in the TOD model is often not viable in the Inner West due to small lot sizes and high land values.
Council’s zoning strategy includes:
Rezoning areas around train stations, light rail stops, main streets, and the Bays Precinct
Expanding beyond the TOD-specified zones to distribute housing growth more evenly
Protecting heritage zones while planning for supporting infrastructure and open space
Council has also expressed concern over delays in the state’s LEP approval process, pointing to its previous LEP, which took two years to be finalised after submission.
Reforms to the Development Application Process
Alongside rezoning efforts, Council has introduced reforms to improve the efficiency of development application (DA) assessments. These were proposed by Ashfield Ward Councillor Jess D’Arienzo to address long-standing delays and a fragmented approval system.
The reforms include:
A Significant Residential Development Panel to fast-track major housing proposals
Appointment of a City Architect to ensure consistency in urban design and sustainability
Introduction of a Post-DA Survey to collect applicant feedback and improve service delivery
These measures are intended to prepare the planning system for the expected increase in housing proposals once new rezonings are in place.
Comparing TOD and Low and Mid-Rise Housing Policies
While Council is responding directly to the TOD framework, it's important to note that the TOD Program is distinct from the NSW Government’s Low and Mid-Rise Housing Policy, which also applies across parts of the Inner West.
Here’s a comparison of the two state-led housing policies:
Implications for Development in the Inner West
Inner West Council’s planning strategy and DA reforms are intended to address local development constraints while aligning with broader state goals. By developing its own Local Environment Plan and introducing new internal processes, Council aims to manage housing growth while retaining a level of control over how and where development occurs.
The public exhibition of the new LEP in April 2025 will be a key moment in shaping the future of housing in the Inner West—particularly as the Council works to avoid the default application of state-led TOD controls.