In case you missed it, we recently explored Development Control Plans (DCPs) and how they influence development outcomes within a council’s area. While DCPs are important, they are not statutory instruments. In Part 2 of our series, we turn to Local Environmental Plans (LEPs) — the primary legal framework that governs land use in New South Wales.
What is an LEP?
A Local Environmental Plan (LEP) is a statutory instrument that applies to all land within a local government area. It divides land into zones and sets out the types of development that can occur within those zones.
To illustrate how an LEP operates, we will again use the City of Sydney as an example.
When you walk through any suburb, you will notice that certain areas are clearly residential, others commercial, industrial, or recreational. This is not accidental. Each council prepares its LEP with specific objectives in mind — balancing housing, employment, environmental protection, and community needs for those who live, work, and visit the area.
Councils may amend zoning over time as population growth or strategic priorities change. For example, land previously zoned for low-density residential use (commonly R2) may be rezoned to allow greater density, enabling more diverse housing types. Across NSW, councils must select from a standard set of government-approved zones (there are currently 35 available). They cannot create entirely new zones outside this framework.
What Does an LEP Do?
An LEP performs several key functions.
First, it sets zone objectives and permissible land uses. For each zone, the LEP identifies:
Development permitted without consent
Development permitted with consent
Development that is prohibited
The objectives guide how the zone is intended to function. For example, in the City of Sydney, the E2 Commercial Centre zone includes objectives aimed at supporting vibrant business districts and encouraging walking and cycling.
Second, the LEP establishes core development standards that apply to land. These include controls such as:
Maximum building heights
Floor space ratio (FSR) limits
Minimum lot sizes
Heritage provisions
Environmental protections
Special provisions for particular sites
All land within the council area is subject to the LEP, and development decisions are made with reference to it. Councils use a Standard Instrument LEP template issued by the NSW Department of Planning. While councils can tailor certain provisions to suit their area, substantive structural changes require a formal planning proposal and approval process.
How Does the LEP Affect Your Development?
The LEP directly affects what you can build and how you can use your land.
Before lodging a Development Application, one of the first questions asked is whether the proposed use is permissible under the relevant zone. If it is prohibited, the council cannot approve it.
The LEP also interacts with other planning mechanisms, including Complying Development Certificates (CDCs) and State Environmental Planning Policies (SEPPs), which may overlay additional controls or pathways. While these will be discussed in later articles, it is important to understand that the LEP is typically the starting point in assessing whether a proposal is even capable of approval.
In practical terms, the LEP may regulate:
Height and floor space limits
Car parking requirements
Development on foreshore land
Affordable housing contributions
Site-specific provisions that modify or exempt certain land
The physical characteristics of the land — such as heritage significance, environmental constraints, or strategic importance — often determine which provisions apply.
Why LEPs Matter
At a fundamental level, the LEP establishes the framework for orderly and consistent development within a local government area. It ensures that incompatible land uses do not conflict — for example, that heavy industrial development does not occur within a quiet residential street, or that essential community facilities are appropriately located.
By setting clear rules and objectives, LEPs promote planned growth, environmental protection, and community amenity.
In our next article, we will examine State Environmental Planning Policies (SEPPs) and how they introduce an additional layer of planning control across New South Wales.
If you are unsure how the LEP affects your property, or require advice regarding a refusal or appeal, our firm offers a complimentary 30-minute consultation to discuss your options.
