Policies and initiatives > Direction 2. Better management of metropolitan growth > Policy 2.1

Policy 2.1 - Establish an urban growth boundary to set clear limits to metropolitan Melbourne’s outward development

Metropolitan Melbourne has expanded progressively as additional areas have been added at the fringes for new development. Although some inner city areas have comparatively high densities of population, due to the form of development after the Second World War, the average density of the metropolitan area at around 14.9 persons per hectare (pph) is low by international standards. Montreal has 33.8 pph, for example, and Toronto has 41.5 pph; both cities compare in population, size and function to Melbourne. Increasingly, metropolitan Melbourne is spilling into areas noted for productive agricultural capacity, environment or conservation features, mineral resources, recreation or landscape values.

Figure 28. Significant environmental resources and constraints - click for more detail

Melbourne 2030 establishes an urban growth boundary to better manage outward expansion. This is a tool to facilitate the achievement of a more compact city. It promotes sustainable development by directing growth to areas best able to be supplied with appropriate infrastructure and services and by protecting other valuable land from urban development pressures.

The urban growth boundary will be applied around the urban areas of metropolitan Melbourne. In the Mornington Peninsula Shire, this includes the bayside section and the township and industrial areas of Hastings. It also includes the satellite towns of Melton and Sunbury. It is based on current urban zonings for most of the fringe areas, except in the designated growth areas where it includes some land that will be required for future urban development. In a few growth areas, some land previously designated for future urban development is excluded, either pending review of the growth area plans (such as the west and north of Hume) or on the basis that these areas are unsuitable for urban development (such as the north of Werribee), primarily because of lack of access to high-capacity (usually fixed rail) regional public transport services.

Outside the designated growth areas, the boundary will be set permanently following consultation on the implementation of Melbourne 2030. Within the designated growth areas, it will be set on completion of the review of the development plans for each growth area.

Figure 29. Significant water resources - click for more detail

Other townships in the region may have an urban growth boundary applied if the local planning authority recommends one, and/or if the Government considers that this measure is needed to support the directions of Melbourne 2030 to protect the townships in question from overdevelopment or to safeguard valuable features in rural areas.

The need for urban growth boundaries for Geelong, Ballarat and Bendigo will be considered as part of the action plans being developed for those cities. Boundaries for towns in the Latrobe Valley have been largely determined in the Latrobe Valley Framework for the Future, based on the constraints of protecting coal reserves.

The location of the urban growth boundary for metropolitan Melbourne is shown in Figure 17, Compact city.

Future variation of the urban growth boundary will be infrequent, and should only occur in relation to the needs demonstrated in the designated growth areas. As proposed, it includes enough land for development to provide for metropolitan Melbourne’s needs in the foreseeable future, given the redirection of priorities.

A reasonable amount of land has been set aside in metropolitan Melbourne to maintain a supply of affordable housing under a competitive market system. The rate at which this land is used will depend on the new design parameters under which those areas will be developed, and on other development initiatives being pursued in established areas to expand housing supply, choice and diversity.

Land within the urban growth boundary that is presently used for rural purposes can continue in this use. It will be protected for rural use until such time as conversion to urban use is warranted and the extension of urban services is approved as part of the sequencing of development.

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