Farmland or townhouses? The fight for the future of Daylesford

Prime farmland in Victoria’s spa country that has grown food for more than a century would make way for property development under a contentious plan for Daylesford’s future.

The landowner and surrounding neighbours are alarmed by Hepburn Shire’s proposal to extend Daylesford’s urban boundary into farmland, arguing the town’s rural and agricultural identity should be preserved for future generations.

Ned Powell on the property his family has farmed for more than 100 years. Credit: Jason South

But the council maintains that it must plan for future development, with regional housing shortages expected to intensify in coming years. It estimates about 100 homes of varying configurations could fit on the property within the extended boundary.

The family that owns the land has attacked the proposal to rezone 14 hectares of its 40-hectare farm from agricultural to residential, saying it could force them to give up farming on that part of the property.

They insisted they had no plans to sell the land, but rezoning it could raise its value and significantly increase their municipal rates.

Some residents are also against the proposed rezoning. They said extending Daylesford’s boundary would urbanise valuable arable land and erode the region’s rural identity, which has attracted generations of holidaymakers.

Daylesford residents, including Debora Semple and Vasko Drogriski, are pushing back against plans to rezone farmland near their homes.Credit: Jason South

The battle over Daylesford’s future comes amid community opposition to developments considered at odds with the town’s natural features. Last year, renovation program The Block abandoned plans to film the building of five luxury homes in Daylesford after backlash from locals.

Ned Powell lives on the property earmarked for rezoning, while his aunt’s side of the family runs the farm. Powell’s great-grandfather bought the property in 1921.

He said his family was shocked by the proposed rezoning, which was laid out last month in the shire’s draft structure plan for Daylesford and Hepburn Springs.

“We never had any intention of selling,” he said. “The whole family wants it to continue as a farm and remain in the family.”

The site where locals successfully pushed back against a development proposed by TV show The Block. Credit: Jason South

Powell said the family feared increased rates could make it too expensive to farm that part of the property.

“The financial pressure would be on from the start if it gets rezoned. My family is not rich.”

The farm is currently used to run sheep but previously also grew potatoes, cereals and wheat. Powell said the rich volcanic soil made it important for food production rather than property development. He said urban sprawl consumed much fertile land around Melbourne, and Daylesford should be spared that fate.

“Daylesford is an aesthetically beautiful tourist town. The tourists don’t come here to see modern [housing] developments. The town has a certain charm.”

Daylesford is among regional Victoria’s most loved tourist towns. Credit: Joe Armao

The draft structure plan estimated that the tourism industry in Daylesford, Hepburn Springs and the Macedon regions was valued at $95 million in 2020-21. But it said there was a “significant gap” in boutique accommodation and hotels in the region.

Hepburn Shire said an increase in rates was not a determining factor in its structure planning work.

The shire’s development executive manager, Ron Torres, said the council was setting its town and rural plans for the next 20 to 30 years. Town populations would grow, including from existing residents having children and new people moving to the area, he said.

The 2021 census showed Daylesford had a population of almost 2800 people, a figure expected to rise.

Torres said locals were starting to struggle to find affordable housing in the shire.

“Daylesford faces similar challenges to the rest of the country in terms of housing affordability,” he said. “It continues to be a popular place to live in this region due to its surrounding natural beauty and cultural depth.”

Torres said Daylesford covered 1200 hectares and the council’s plan estimated up to 90 per cent of new homes could be accommodated within the existing area of the town.

Vasko Drogriski, who lives near the Powells’ farm, said the council should prioritise intelligently designed housing on existing residential lots to contain urban sprawl. He urged the shire to ensure there was no loss of agricultural land.

“Daylesford and Hepburn are known for food culture,” he said. “Taking the farm away is taking away from Daylesford’s culture.”

Fellow resident Debora Semple said rezoning farms for housing meant that land would never again be used for food production.

“These resources are precious,” she said.

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