National Policy Statement on Urban Development Capacity

The purpose of the National Policy Statement on Urban Development Capacity is to ensure local authorities enable, through their land-use planning and infrastructure, sufficient development capacity for housing and business. This ensures urban areas can grow and change in response to the needs of their communities.

The National Policy Statement on Urban Development Capacity (NPS-UDC) came into effect on 1 December 2016. It is administered by the Ministry for the Environment (MfE) with support from the Ministry of Business, Innovation and Employment.

Visit the MfE website for background research, consultation, Cabinet paper and supporting documents.

Implementation of the National Policy Statement on Urban Development Capacity

Since December 2016, local authorities in urban areas have been working towards meeting the requirements of the NPS-UDC. From 1 June 2017 local authorities in medium and high-growth urban areas were required to begin monitoring market indicators every quarter.

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Guidance on evidence and monitoring policies

Together with the Ministry for the Environment (MfE), MBIE has developed the following guidance to support councils of high and medium growth urban areas to prepare housing and business development capacity assessments, monitor market indicators and use price efficiency indicators.

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Guidance on future development strategies and minimum development capacity targets

Future development strategies (policies PC12 – PC14) set out how sufficient development capacity will be provided across an urban area in the medium and long terms.

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