Rural rezonings and lot-size changes must protect farming and limit fragmentation.
Applies to: Planning proposals for rural or conservation zoned land outside Lake Macquarie, Newcastle, Wollongong and Greater Sydney LGAs (except Wollondilly and Hawkesbury, which are included)Planning proposals affecting rural or conservation zones must align with strategic plans, protect environmental values, consider agriculture's significance, support the right to farm, and minimise land fragmentation and land use conflict. Proposals changing minimum lot sizes must show they won't harm rural land uses and, for rural residential, are well located and needed.
Direction 9.2 is a planning direction that steers how councils and other planning authorities can rezone or change lot sizes on rural and conservation-zoned land in regional NSW. Its core purpose is to protect the productive value of farmland, keep rural land from being carved up into small parcels, and reduce conflict between farms and neighbouring residents. It does this by requiring that any planning proposal touching rural or conservation zones—or altering their minimum lot sizes—be tested against a set of agricultural, environmental, economic and social considerations before it can proceed.
A relevant planning authority (typically the council) when it prepares a planning proposal for rural or conservation zoned land, in the LGAs to which the direction applies.
It applies when a planning proposal will affect land within an existing or proposed rural or conservation zone (including altering a zone boundary), or changes the existing minimum lot size within such a zone. Applicable zones are RU1, RU2, RU3, RU4, RU6, C1, C2, C3, C4 or their non-Standard LEP equivalents.
A planning proposal may be inconsistent only if the planning authority satisfies the Planning Secretary (or nominated officer) that the inconsistent provisions are justified by a strategy approved by the Secretary and in force (which considers the direction's objectives and identifies the subject land), or are of minor significance.
Links to regional and district plans endorsed by the Planning Secretary, local strategic planning statements, the State Environmental Planning Policy (Primary Production) 2021 (chapter 2, State significant agricultural land), the NSW Right to Farm Policy, and the Rural Subdivision Principles in clause 5.16 of the relevant LEP. It replaces the previous Direction 1.5.
The planning proposal must be consistent with any applicable strategic plan, including regional and district plans endorsed by the Planning Secretary, and any applicable local strategic planning statement.
It must consider the significance of agriculture and primary production, and identify and protect environmental values including biodiversity, native vegetation, cultural heritage and water resources.
It must consider natural and physical constraints (topography, size, location, water availability, soil), promote sustainable rural economic activity, and support farmers' right to farm.
It must prioritise measures to minimise the fragmentation of rural land and reduce the risk of land use conflict, particularly between residential and other rural land uses.
It must consider State significant agricultural land identified in chapter 2 of the SEPP (Primary Production) 2021 to ensure its ongoing viability.
A proposal changing the minimum lot size must show it is consistent with minimising fragmentation, will not adversely affect existing/future rural uses and supporting infrastructure, and—if for rural residential purposes—is appropriately located and necessary given demand and supply.
Kiama is a South Coast/Illawarra LGA outside Lake Macquarie, Newcastle, Wollongong and Greater Sydney, so this direction applies to it. Any Kiama planning proposal that rezones or changes minimum lot sizes on its rural or conservation-zoned land (dairy country, coastal hinterland, conservation areas) must run through these tests—especially the anti-fragmentation and land use conflict provisions, which bite where housing pressure pushes rural-residential subdivision against working farms. Note this direction governs planning proposals (LEP changes), not ordinary development applications.
9.2 Rural Lands Objective The objectives of this direction are to: (a) protect the agricultural production value of rural land, (b) facilitate the orderly and economic use and development of rural lands for rural and related purposes, (c) assist in the proper management, development and protection of rural lands to promote the social, economic and environmental welfare of the State, (d) minimise the potential for land fragmentation and land use conflict in rural areas, particularly between residential and other rural land uses, (e) encourage sustainable land use practices and ensure the ongoing viability of agriculture on rural land, (f) support the delivery of the actions outlined in the NSW Right to Farm Policy. Application This direction applies when a relevant planning authority prepares a planning proposal for land outside the local government areas of lake Macquarie, Newcastle, Wollongong and LGAs in the Greater Sydney Region (as defined in the Greater Sydney Commission Act 2015) other than Wollondilly and Hawkesbury, that: (a) will affect land within an existing or proposed rural or conservation zone (including the alteration of any existing rural or conservation zone boundary) or (b) changes the existing minimum lot size on land within a rural or conservation zone. Note: Reference to a rural or conservation zone means any of the following zones or their equivalent in a non- Standard LEP: RU1, RU2, RU3, RU4, RU6, C1, C2, C3, C4. Direction 9.2 (1) A planning proposal must: (a) be consistent with any applicable strategic plan, including regional and district plans endor sed by the Planning Secretary, and any applicable local strategic planning statement (b) consider the significance of agriculture and primary production to the State and rural communities (c) identify and protect environmental values, including but not limited to, maintaining biodiversity, the protection of native vegetation, cultural heritage, and the importance of water resources (d) consider the natural and physical constraints of the land, including but not limited to, topography, size, location, water availability and ground and soil conditions (e) promote opportunities for investment in productive, diversified, innovative and sustainable rural economic activities (f) support farmers in exercising their right to farm (g) prioritise efforts and consider measures to minimise the fragmentation of rural land and reduce the risk of land use conflict, particularly between residential land uses and other rural land use (h) consider State significant agricultural land identified in chapter 2 of the State Environmental Planning Policy (Primary Production) 2021 for the purpose of ensuring the ongoing viability of this land (i) consider the social, economic and environmental interests of the community. (2) A planning proposal that changes the existing minimum lot size on land within a rural or conservation zone must demonstrate that it: (a) is consistent with the priority of minimising rural land fragmentation and land use conflict, particularly between residential and other rural land uses (b) will not adversely affect the operation and viability of existing and future rural land uses and related enterprises, including supporting infrastructure and facilities that are essential to rural industries or supply chains (c) where it is for rural residential purposes: i. is appropriately located taking account of the availability of human services, utility infrastructure, transport and proximity to existing centres ii. is necessary taking account of existing and future demand and supply of rural residential land. Note: where a planning authority seeks to vary an existing minimum lot size within a rural or conservation zone, it must also do so in accordance with the Rural Subdivision Principles in clause 5.16 of the relevant Local Environmental Plan. Consistency A planning proposal may be inconsistent with the terms of this direction only if the relevant planning authority can satisfy the Planning Secretary (or an officer of the Department nominated by the Secretary) that the provisions of the planning proposal that are inconsistent are: (a) justified by a strategy approved by the Planning Secretary and is in force which: i. gives consideration to the objectives of this direction, and ii. identifies the land which is the subject of the planning proposal (if the planning proposal relates to a particular site or sites), or (b) is of minor significance. Issued to commence 1 March 2022 (replaces previous Direction 1.5)
This is an unofficial reproduction provided for convenience. It is not the official version of the legislation. For the official, in-force version, see legislation.nsw.gov.au.
Reproduced from the NSW Department of Planning, Housing and Infrastructure (planning.nsw.gov.au), © State of New South Wales, under Creative Commons Attribution 4.0. Text extraction may introduce minor formatting artefacts — rely on the official source for anything decision-critical.