Housing and Infrastructure Master Plan

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 draft strategy here:

Draft-Rural-Lands-Strategy_For-Public-Exhibition.pdf(PDF, 16MB)

Our housing needs are as diverse as the people who make up Dungog Shire and will continue to change into the future. Our aim is to offer a broad range of housing options to cater for our diverse needs - families, our ageing population, single person households and everyone in between, while simultaneously delivering housing that is affordable.

Key issues that have been considered in the Local Housing Strategy include:

• Neighbourhood Character- identify and map character types to ensure housing growth is balanced with respecting neighbourhood character.
•  Residential Growth Framework – define and map areas of minimal, incremental, and moderate change.
•  Activation of Villages- high level structure plans for Paterson, Vacy and Gresford, along with providing flexibility for retailing or exhibiting local produce, art, craft and tourism
•  Multi-Generational and Downsizing Housing – streamline secondary dwellings, integrated housing and residential aged care facilities, along with family-orientated planning principles for growth areas.
•  Form-Based Planning Standards - develop design-led planning controls and development standards for diverse housing typologies.
•  Design advice – guidance, simple solutions and examples for building and renovating housing based on designs to reduce ongoing household costs.

To view the strategy, please click here:

Draft-Local-Housing-Strategy.pdf(PDF, 32MB)

Our aims is to outline what infrastructure is needed to facilitate and enable our future population growth.

Key issues that have been considered in the Infrastructure Capacity and Prioritisation Plan include:

• Review and Update our requirements for open space and recreation facilities – review Council’s Open Space and Recreation Plan (2022) in line with updated population projections to 2041.
• Analyse Hunter Service Plans – assess sewer and water service planning in alignment with planning assumptions and compliance with sewage requirements.
•  Advocacy for health, schools and emergency services – high level benchmarking to determine future demand and gaps for State infrastructure.
•  Community Facilities Benchmarking – determine expectations and comparable benchmarks for libraries and community facilities to meet future population growth.
•  Road maintenance and upgrades – analyse potential demand for road upgrades from development.
•  Funding Options – recommend funding methods for future infrastructure, including NSW and Commonwealth funding and development contributions.
•  Delivery Plan – prioritise and map a schedule of works with high level costs and service catchments.

View the draft report here:
Draft-Infrastructure-Capacity-Prioritisation-Plan.pdf(PDF, 51MB)

An updated planning statement will set our vision to 2041 and our overarching growth management approach across Dungog Shire. Our aim is to set out clear planning priorities and actions needed to turn our vision into reality through our planning controls and development standards. 

Key issues that have been considered in the Local Strategic Planning Statement include:

• Demographic & Economic Trends – population growth, employment shifts, housing demand across Dungog Shire.
• Integrating Strategies – incorporating the key objectives and moves of the Rural Lands Strategy, Local Housing Strategy, Infrastructure Capacity and Prioritisation Plan, Dungog and Clarence Town Structure Plans into the LSPS.
• Planning Principles – set the strategic outcomes for biodiversity, sustainable buildings, natural hazards, resilience, water quality.
• Tourism, Retail and Events – promote sustainable, rural and cultural heritage tourism opportunities and greater retail choices and flexibility for events.
• Employment & Business Zones – identify employment land supply gaps, creative and local manufacturing industries, business growth and opportunities from the renewable energy zone.

View the draft strategy here:

Draft-Local-Strategic-Planning-Statement-Public-Exhibition.pdf(PDF, 28MB)

Dungog is the primary urban centre of our shire. Our aim is to ensure there are opportunities for growing the town centre, increasing business opportunities and provide for new development whilst ensuring that local environmental values, biodiversity,  landscape, agricultural land and rural character are protected and maintained.

Key issues that have been considered in the Dungog Strategic Centre Structure Plan include:

• Master-planning Key Moves – outline the key strategic moves across Dowling Street, a sports and creative precinct, new communities at Tabbil Creek, Dungog Common and Melbee affordable housing.
• Housing & Growth – align with the local housing strategy to guide population growth and housing delivery.
• Character & Heritage – define character areas, objectives, and heritage-sensitive planning and adaptive re-use.
• Built Form Controls – establish height, active street frontages, and other building design standards for the town centre.
• Movement and access – set walking and cycling priorities to connective key activity centres
• Open Space and Greening – focus on green grid approach to integrating public open space and conservation areas with leafy, green and water sensitive streets.

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

Draft-Dungog-Structure-Plan_For-Public-Exhibition.pdf(PDF, 116MB)

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:

Draft-Executive-Summary-and-Delivery-Plan_-For-Public-Exhibition.pdf(PDF, 36MB)

View the draft report here:

Community-Visioning-Report.pdf(PDF, 4MB)

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.

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.

The Master Plan brings together five core strategies:

• Local Housing Strategy – identifies how to deliver the 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

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. Future housing will be delivered through to 2041:

• Infill development within towns (335 new homes)
• Greenfield sites on town edges (1,647 new homes)
• Growth in rural areas through subdivisions with new dwellings and dual occupancies (434 homes)

Only 18% of new dwellings are expected in rural areas, maintaining our rural character.

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).

• 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 draft 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.

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. 

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.

The LSPS outlines the community’s long-term planning vision. It links regional goals from the Hunter Regional Plan 2041 to Dungog’s local planning decisions. The 2025 update reflects current priorities, including:

• Rural character
• Housing diversity
• Sustainable infrastructure
• Environmental and cultural values
• How will rural land be managed

The draft 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.

Yes. The draft 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.

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.

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

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.

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

If Council adopts the strategy, 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.

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.

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.

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.

Yes. The draft 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. 

You can:

• Review the draft documents during public exhibition
• Provide feedback online or in writing
• Attend drop-in sessions or information events

Council will consider all feedback before finalising the Master Plan.

After the public exhibition period closes, Council will review all submissions, prepare responses, and consider amendments where there is clear strategic merit. The final strategies are expected to be reported to Council for adoption in March 2026.

Once 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.

Dungog Shire Council – Strategic Planning Team

Phone: (02) 4995 7777

Email: shirecouncil@dungog.nsw.gov.au