Housing and Infrastructure Master Plan

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Dungog Shire Housing & Infrastructure Master Plan

Dungog Shire Council has adopted a suite of major strategic planning documents under the Commonwealth Government-funded Housing Support Program – Stream 1, marking a significant opportunity for the community to shape the future of the Shire.

The documents form the foundation of our long-term growth management framework and have been developed to guide how the Shire will meet the NSW Government's Hunter Regional Plan 2041, which aims to address strategic planning needs including housing, infrastructure and the environment across the state and the region over the next 15 years. Dungog Shire has been earmarked to deliver a minimum 2400 homes as part of the region’s strategy.

This plan is all about shaping the future of our towns, villages, and rural areas, making sure we have the right housing, services, and infrastructure to keep our Shire thriving as we grow. Think smoother roads, smarter planning, better-connected communities, and homes that meet the needs of locals now and into the future.

Why are the strategies important?

Dungog Shire is growing, and our current planning framework is outdated. The Master Plan helps us:

• Plan for housing in the right places

• Align infrastructure with growth

• Protect our environment and rural landscapes

• Support local jobs and services

• Ensure change is well-managed and community-driven

What documents are included in the Dungog Shire Housing & Infrastructure Master Plan

The Master Plan brings together five core strategies:

Local Housing Strategy – identifies how to deliver a minimum 2,400 new homes needed by 2041 and identifies the types of housing required to meet the needs of our future population

Rural Lands Strategy – supports sustainable rural living and working farmland, while assisting farmers in diversifying income streams

• Infrastructure Capacity and Prioritisation Plan – guides where infrastructure upgrades for roads, public transport, utilities, community facilities and open space are needed

• Dungog Strategic Centre Structure Plan and Streetscape Masterplan – revitalises the town centre and supports walkable, people-focused growth

• Local Strategic Planning Statement (LSPS) – outlines Council’s strategic planning vision to 2041

View the Strategies here

You can explore the strategies below.

Rural Lands Strategy

Our rural lands contain a diverse range of enterprises and opportunities that support our rural lifestyle and livelihoods. Our aim is to diversify rural areas by managing how rural land is used and developed to deliver balanced outcomes for our community.

Key issues that have been considered in the Rural Lands Strategy include:

  • Rural Enterprises and Diversification – emphasise flexibility for farming families to supplement income through agritourism and other farm-based employment.
  • Zoning Strategy – consider the need to diversify our rural land use zones, including how we zone land instead of applying a current ‘one-size-fits-all’ approach.
  •  Minimum Lot Sizes – apply place-based methodology for minimum lot size controls across rural zones.
  •  Dwelling Entitlements Repeal– repeal the dwelling entitlements provision in the LEP for dwellings on lots below the minimum lot size threshold with a 5 year sunset clause.
  •  Simplify Development Requirements – facilitate the construction of appropriate rural and farming structures (such as sheds) with minimal regulation.
  •  Rural Lifestyle and Housing Choices – balance opportunities for more rural housing with a sustainable rural future.

View the strategy here:

Dungog-Shire-Rural-Lands-Strategy.pdf(PDF, 20MB)

Local Housing Strategy

 The Local Housing Strategy establishes a clear, place-based framework to deliver well-located, diverse and affordable housing aligned with infrastructure capacity and community values. Key moves include: 

  • Direct housing growth to existing centres and serviced locations - focus new housing in Dungog, Clarence Town and key villages where access to infrastructure, services and employment supports sustainable and efficient growth.  

  • Increase housing diversity to meet changing community needs -enable a broader mix of housing typologies, including smaller lots, dual occupancies and adaptable dwellings to support ageing in place, smaller households and key workers.  

  • Facilitate infill and incremental growth within established areas -prioritise well-located infill development and renewal opportunities to maximise use of existing infrastructure and reinforce walkable, connected neighbourhoods.  

  • Align housing delivery with infrastructure capacity and staging - adopt an infrastructure-led approach to ensure development occurs where services can be provided efficiently and sustainably, reducing delivery risk and cost.  

  • Protect rural character, environmental assets and agricultural land - manage the interface between urban and rural areas to maintain landscape character, avoid land use conflict and support long-term agricultural productivity.  

  • Embed place-based planning and local character outcomes - apply tailored planning controls and design guidance to ensure new housing responds to the distinct identity, scale and form of each town and village.  

  • Support affordability and improve housing supply certainty -provide a clear strategic framework to guide rezonings and planning proposals, improving market confidence and enabling timely delivery of housing.  

To view the strategy, please click here:

Dungog-Shire-Local-Housing-Strategy.pdf(PDF, 39MB)

Infrastructure Capacity and Prioritisation Plan

The Infrastructure Capacity and Prioritisation Plan provides a coordinated, evidence-based framework to align infrastructure delivery with population growth and land use planning. Key moves include: 

  • Adopt an infrastructure-first approach to growth - prioritise housing and employment in locations where infrastructure capacity exists or can be delivered and upgraded efficiently, ensuring development is sequenced and financially sustainable.  

  • Identify and prioritise critical infrastructure to unlock growth areas - map and list infrastructure requirements across transport, water, sewer, stormwater, social and open space to support planned housing and employment outcomes.  

  • Strengthen transport networks and regional connectivity - improve road function, safety and resilience, including advocating for road recategorisation, and planning for targeted upgrades and enhanced access between towns, villages and regional centres.  

  • Plan for water, sewer and utility constraints and upgrades - work with servicing authorities to address capacity limitations, particularly in Clarence Town, Vacy and Gresford and other constrained areas, to enable future development.  

  • Enhance active transport and accessibility within settlements - deliver improved walking and cycling connections to support accessible neighbourhoods and reduce reliance on private vehicles.  

  • Address flood, drainage and resilience challenges - integrate updated flood planning, stormwater management and water sensitive urban design to ensure development does not increase adverse flooding impacts to human life and property.  

  • Plan for equitable and efficient social infrastructure provision - improve access to community facilities, open space and recreation infrastructure across towns and villages, responding to population growth and ageing demographics.  

  • Leverage funding partnerships and delivery mechanisms - pursue State and Commonwealth funding, advocacy priorities and alternative delivery models to support infrastructure investment beyond Council’s financial capacity 

Review the report here:

Dungog-Shire-Infrastructure-Capacity-and-Prioritisation-Plan.pdf(PDF, 38MB)

Local Strategic Planning Statement (LSPS): A Growth Management Strategy

The LSPS establishes a coordinated growth management framework to guide land use, housing, employment and infrastructure to 2041, aligning local priorities with regional and State planning directions. Key moves include: 

  • Integrate land use, housing and infrastructure planning - align the Local Housing Strategy, Rural Lands Strategy, Structure Plans and Infrastructure Plan into a single framework to ensure coordinated and efficient decision-making.  

  • Strengthen the local economy and employment opportunities - support diversification of the economy through agriculture, tourism, small business, and emerging industries, while identifying and protecting employment lands.  

  • Protect environmental assets and manage natural hazards - safeguard biodiversity, water catchments and rural landscapes, while integrating planning responses to flooding, bushfire and climate resilience.  

  • Support connected, accessible and liveable communities - improve transport, digital connectivity and access to services to strengthen social cohesion and liveability across the Shire.  

  • Provide a clear pathway for implementation through planning controls- guide future amendments to the Local Environmental Plan, Development Control Plan and Contributions Plan to deliver consistent and transparent outcomes. 

View the strategy here:

Local-Strategic-Planning-Statement-a-Growth-Management-Strategy-for-Dungog-Shire1.pdf(PDF, 29MB)

 

 

Dungog Strategic Centre Structure Plan

The Dungog Strategic Centre Structure Plan provides a clear, place-based framework to guide growth of the town centre while reinforcing its character, improving liveability and supporting local economic activity. Key moves include: 

  • Strengthen the town centre as the primary service and activity hub - support additional housing, local employment and commercial activity within and around the centre to reinforce its role in the Shire.  

  • Enable well-located infill housing and increased diversity - deliver smaller lot and medium-density housing opportunities within walking distance of the centre to support population growth and housing choice.  

  • Enhance the public domain and civic spine - improve streetscapes along key corridors including Dowling Street, with a focus on amenity, shade, activation and pedestrian priority.  

  • Improve walkability and active transport connections - strengthen pedestrian and cycling links between neighbourhoods, the town centre, schools, parks and the river to create a more connected and accessible place.  

  • Support local employment and industrial growth - support expansion of employment lands, particularly around Common Road, to support local jobs and business opportunities.  

  • Embed green infrastructure and landscape character - increase tree canopy and reinforce the town’s green, rural setting.  

  • Protect heritage and reinforce local character - ensure new development responds to established character areas through appropriate built form, scale and heritage-sensitive design controls.  

  • Integrate movement, land use and urban design outcomes - coordinate transport, built form and land use planning to support a cohesive, legible and people-focused town centre. 

To view the plan, please click on the link below:

Dungog-Structure-Plan-High-Resolution.pdf(PDF, 102MB)

Executive Summary and Delivery Plan

Provides a comprehensive synthesis of all strategies, articulating the Shire’s growth vision to 2041. With significant work occurring across multiple plans, the executive summary brings these elements together in a clear, accessible document that explains the pathway forward and is supported by a delivery plan.

To view the Executive Summary, please click on the link below:

Dungog-Shire-Housing-and-Infrastructure-Master-Plan-Executive-Summary-and-Delivery-Plan.pdf(PDF, 25MB)

Community Visioning and Public Exhibition Engagement Outcomes Report

The Community Visioning and Public Exhibition Engagement Outcomes Report summarises early engagement undertaken to inform the development of the Housing and Infrastructure Master Plan. It captures local priorities, values and aspirations identified through community visioning activities, alongside feedback received during public exhibition. The report explains how this feedback shaped the final strategies, including where amendments were made and, where not, the rationale for retaining the exhibited approach.

View the report here:

Dungog-Shire-Housing-and-Infrastructure-Community-Visioning-and-Engagement-Outcomes-Report.pdf(PDF, 9MB)


Like to know more?

Here's a series of frequently asked questions which may also help.

What is the Dungog Shire Housing and Infrastructure Master Plan (the Master Plan)?

The Master Plan sets the long-term direction for how and where Dungog Shire will grow through to 2041. It provides an integrated, evidence-based framework to guide decisions on housing, infrastructure, land use, environment, and rural development. It replaces outdated plans and supports preparation of a new Local Environmental Plan, Development Control Plan, and Contributions Plan.


Why is this project important now?

Dungog Shire is growing, and our current planning framework is outdated. Council is also required to demonstrate how it will respond to the strategic planning objectives set out in the Hunter Regional Plan 2041, which is a State Government strategic planning document. The Master Plan helps us:

  • Deliver a minimum of 2,400 homes to 2041, as required by the Hunter Regional Plan 2041
  • Plan for housing in the right places
  • Align infrastructure with growth
  • Protect our environment and rural landscapes
  • Support local jobs and services
  • Ensure change is well-managed and community-driven,

The plan was supported by funding from the Australian Government’s Housing Support Program – Stream 1 to build better local planning systems.


What documents are part of the Master Plan?

The Master Plan brings together five core strategies:

  • Local Housing Strategy – identifies how to deliver a minimum 2,400 new homes needed by 2041
  • Rural Lands Strategy – supports sustainable rural living and working farmland
  • Infrastructure Capacity and Prioritisation Plan – guides where utility, transport and community infrastructure upgrades are needed
  • Dungog Strategic Centre Structure Plan and Streetscape Masterplan – revitalises the town centre and supports walkable, people-focused growth
  • Local Strategic Planning Statement (LSPS) – outlines Council’s strategic planning vision to 2041

 

Where will new growth occur?

Growth is focused in and around:

  • Dungog Strategic Centre
  • Clarence Town
  • Paterson
  • Other villages like Vacy, Gresford, and Martins Creek may also see limited change.

 

What are “change areas” and how were they identified?

Change areas are locations identified as suitable for future housing growth based on:

  1. Existing infrastructure
    • Proximity to services including shops and local health services
    • Availability and potential upgrades of utility infrastructure including water, sewerage and electricity
    • Environmental and hazard constraints
  2. Constraints analysis was used to map:
  • Fixed constraints (e.g. high hazard flood zones and bushfire risk and steep slopes) – where development is generally avoided
  • Conditional constraints – where development may be possible with design or mitigation measures
  • Opportunity sites (with minimal constraints) were prioritised for short-term growth within close proximity to town and village centres (within 1-2km).


How does this affect landowners and development?

  • The Master Plan sets the strategic merit for future rezonings and development proposals. However, most change areas will require landowner-led planning proposals to change planning controls in the Local environmental Plan (such as land use zones and minimum lot sizes) to enable increased dwelling yields on land.
  • Proponent-led planning proposals must demonstrate both strategic merit, by aligning with the directions and objectives of the Local Housing Strategy, and site-specific merit, by addressing relevant planning, environmental, servicing, and infrastructure considerations in accordance with the NSW Planning System. Council will continue to work collaboratively with landowners, the development industry, state agencies, and the local community to ensure that future rezonings and land use changes are orderly, sustainable, and infrastructure ready.
  • Growth will be staged and rely on infrastructure rollout. Not all identified land will be rezoned or developed immediately.

 

What about the environment and natural hazards?

The Master Plan embeds environmental protection by:

  • Avoiding high-hazard flood-prone or bushfire-prone areas for major growth
  • Identifying the need for biodiversity assessments to support planning proposals and development applications in areas that may impact koala habitat and biodiversity corridors
  • Setting planning principles that balance the protection of water quality whilst enabling sensible, reflecting the level of risk to water catchments and the type and intensity of proposed development. 


What is happening in Dungog town centre?

The Dungog Strategic Centre Structure Plan and Streetscape Masterplan outlines a vision for a:

  • Walkable, well-vegetated town
  • Revitalised main street (Dowling Street)
  • Safer streets for pedestrians and cyclists
  • Public spaces linked to parks and the river
  • Growth in housing and local jobs

New paving, street trees, crossings and traffic calming measures will enhance amenity, character, and sustainability.


What is the Local Strategic Planning Statement (LSPS)?

The LSPS outlines the community’s long-term planning vision. It links regional goals from the Hunter Regional Plan 2041 to Dungog Shire's local planning decisions. The 2025 LSPS plans for the following outcomes:

  • Protection of rural character
  • Increased housing supply and diversity
  • Sustainable infrastructure
  • Protection of environmental and cultural values
  • Encouraging local employment growth and enhanced tourism opportunities

 

What are the main Rural Lands proposed zones?

The Rural Lands Strategy introduces a more place-based approach to zoning. It proposes three rural zones across different landscape types:

  • RU1 Primary Production (Riverlands) – focusing on supporting working agricultural land.
  • RU2 Rural Landscape (Tablelands) – suited to grazing, extensive farming and wider community uses.
  • RU4 Primary Production Small Lots – supporting small-scale, intensive or value-added agriculture close to towns and markets.

 

Will minimum lot sizes change?

Yes. The Rural Lands Strategy proposes minimum lot sizes that better reflect farming capability and align with surrounding councils. Key proposals include:

  • RU1 Riverlands: shifting from a 60-hectare minimum to 40 hectares, giving farmers more flexibility to expand or diversify while avoiding unnecessary fragmentation.
  • RU2 Rural Landscape: applying a 40-hectare minimum to suit larger, extensive rural uses and community uses.
  • RU4 Small Lots: applying a 20-hectare minimum to support smaller farms and intensive agriculture.

 

Why is the RU1 minimum lot size being reduced from 60ha to 40ha?

Most RU1 land is already made up of parcels smaller than 60ha. A 40-hectare minimum better reflects existing patterns while still supporting working agricultural land. It also brings Dungog Shire in line with nearby LGAs and makes farm ownership more manageable for new and existing landholders.


How will the changes support farming?

The Strategy helps ensure rural land stays productive by:

  • Matching zoning to land capability
  • Supporting diversification, agri-tourism and value-added ventures
  • Allowing greater flexibility for sheds, fencing and small improvements without the need to be assessed through complex development assessment frameworks while keeping safeguards for water quality and the environment

 

Is this Master Plan rezoning land?

Not directly. The Master Plan provides the evidence base and strategic direction needed to support:

  • Council-led rezoning through planning proposals (in potential future stages and subject to available resourcing and funding)
  • Proponent-led planning proposals (by landowners/developers) that increase development density, or that require more detailed considerations due to potential environmental risks or increased infrastructure demands that must be assessed and managed.

All proposals must align with the Master Plan and pass detailed assessment.


Will my land be automatically rezoned if it appears in the Master Plan?

No. Just because your land is shown in the Master Plan as a potential site for rezoning, doesn't mean it will automatically change. 

Any zoning or minimum lot size change still requires a separate Planning Proposal to amend the Dungog Local Environmental Plan, which requires approval from both Council and State Government. A Planning Proposal can be instigated by you, the landowner of your individual lot/s, or by Council across a region or town, but we do not have the required funding to deliver this at this stage.

However, proposals that significantly increase development density, for example, a change from RU1 Primary Production (farmland) to R5 Large Lot Residential, can be instigated by the landowner. While the strategy establishes the strategic merit for future rezoning applications, landowners must still demonstrate site-specific merit and provide the detailed technical studies assessing environmental constraints, infrastructure capacity and servicing requirements to support the zoning change. 

If future Government grants become available, Council may consider precinct-wide Planning Proposals for the areas identified in the strategy, but at this stage, any changes to zoning need to be instigated by the landowner.

 

 

If my land is rezoned, will my rates automatically increase?

Not necessarily. Council rates are based on current land value, as assessed by the NSW Valuer General, and the predominant use of the land. Zoning alone does not determine rates. A change to your rates would only occur after a rezoning is formally gazetted and if development or land use consistent with the new zone is undertaken or approved.

 

What happens if my current land use becomes prohibited under a new zone?

Existing lawful uses are protected under the Environmental Planning and Assessment Act 1979 (the Act). If your land is being used lawfully, or you have an existing development consent that has not lapsed, you may continue that use even if it becomes prohibited under a new zone. Division 4.11 of the Act provides for “existing use rights”, which allow a landowner to continue a lawful use that existed immediately before a new planning instrument took effect, or where development consent was granted before the change and the works were substantially commenced within the required timeframe.

 

Can landowners still subdivide?

Landowners can still subdivide, subject to complying with current planning controls in the LEP and DCP. Subdivision will still depend on zoning, minimum lot size and land capability. The proposed changes may create more opportunities in some areas and fewer in others. Subdivision remains subject to a development application and assessment.


Will this improve infrastructure delivery?

Yes. The Master Plan supports:

  • Prioritised infrastructure upgrades (roads, public and active transport, water, sewer, electricity, open space and community facilities)
  • Contributions planning and government funding bids
  • Coordinated staging with housing development

Most infrastructure, including public transport, sewer and water services, and electricity, depends on investment from state government and utility providers. The Master Plan is a key advocacy tool to secure this support, enabling additional housing and growth while ensuring communities remain well serviced.

Other local infrastructure items, such as open space upgrades, active transport links, and multi-purpose community facilities, will be delivered through a combination of private development models under Voluntary Planning Agreements or development conditions of consent, local contributions plans, and State or Federal grant funding. 

 

What Comes Next after Adoption of the Strategies?

Now the strategies are adopted, Council will begin preparing a Planning Proposal for a new Local Environmental Plan, supported by a new Development Control Plan and an updated Contributions Plan.

Any development that proposes to increase dwelling density, create a significant additional demand for infrastructure, or presents more complex environmental management considerations will need to progress through a landowner or developer-led planning proposal to demonstrate site-specific merit. If funding becomes available, Council may also initiate precinct-led planning proposals in locations where coordinated planning would assist in delivering infrastructure and supporting growth.

It is important to recognise that many major infrastructure upgrades, such as improvements to public transport, sewerage, potable water and electricity networks, will require continued coordination with and investment from state government agencies and utility providers. These systems cannot be delivered by Council alone.

Local infrastructure items, including open space upgrades, active transport links and community facilities, will depend largely on development occurring. They are typically delivered through conditions of consent, local contributions plans, voluntary planning agreements or state and federal grant funding. Without development or external funding, many of these local improvements cannot proceed.

 

Who can I contact for more information?

Dungog Shire Council – Strategic Planning Team

Phone: (02) 4995 7777

Email: shirecouncil@dungog.nsw.gov.au