Why this council has kicked up a stink about new planning rules

An eastern suburbs council wants development laws suspended only weeks after they came into effect, saying the laws could increase everything from flood risk to the strain on roads, schools and sewerage.

Woollahra Municipal Council has requested a temporary suspension of state government reforms in the town centres of Rose Bay, Double Bay and Edgecliff, areas captured by the low and mid-rise (LMR) housing policy, which the state government says will ensure the council contributes its share of thousands of new homes needed in NSW.

Court Road, Double Bay with building height and scale permitted under NSW government’s low- and mid-rise housing policy (artist’s impression). Credit: Woollahra Municipal Council

The controversial “missing middle” laws, in effect since February, prevent councils from blocking applications for buildings up to six storeys within 400 metres, and up to three storeys within 800 metres, of certain areas. They are central to the Minns government’s commitment to build 377,000 new homes in NSW under the National Housing Accord. Woollahra must build 1900 homes by mid-2029 under a target set by the state government last year.

Planning Minister Paul Scully responded last week, saying his department “undertook extensive engagement with all councils impacted by the policy, including Woollahra Council”, holding a workshop with council staff in May 2024.

In a statement on Monday, a spokesman for Woollahra Council disagreed, describing the engagement as minimal. “We are deeply concerned that reforms of this nature can be introduced without the NSW government fully understanding the implications,” he said.

Last week, Scully said the processes considered council feedback on sites’ unsuitability due to flood risk, but he said Woollahra was “well-placed with existing and future infrastructure to provide a diverse range of housing where people want to live”.

Under strain: Bondi waste water treatment centre.Credit: Steven Siewert

“The low- and mid-rise housing policy will help council achieve this target.”

Woollahra, which was not one of the LGAs Scully wrote to last month asking them to “lift their game” and approve higher-density housing faster, had an average approval time of 140 days in April, above the target of 115 days.

The council passed a motion requesting a suspension in March. At its April meeting, it revealed it requested documents used to assess potential impacts caused by increased housing in flood-prone areas in Double Bay and Rose Bay, under the Government Information (Public Access) Act.

Councillors have complained of squeezed public schools: Rose Bay Secondary school and local primary schools are near capacity; as well as congested roads and overcrowded bus and train routes through Edgecliff Station.

They have also cited Edgecliff’s exclusion from the state government’s transport-oriented development program “due to water and sewerage constraints”, saying Double Bay and Rose Bay could have similar issues, adding to the strain on the nearby Bondi waste water treatment plant. The council has requested a detailed assessment from Sydney Water.

Councillor Merrill Witt said a high, unstable water table made the area unsuitable for the scale of development proposed.

“We’re the seventh-densest population municipality in NSW at the moment. I just don’t even really know how it’s going to address the housing affordability crisis.”

Scully declined to comment further.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.