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Guidance for local authorities on the NPS-UDC

Guidance is provided to councils of high-growth and medium-growth urban areas to meet the requirements of the National Policy Statement on Urban Development Capacity.

Guidance on evidence and monitoring policies

The Ministry for the Environment (MfE) and the Ministry of Business, Innovation and Employment (MBIE) have developed the following guidance to support local authorities in high-growth and medium-growth urban areas to:

  • prepare housing and business development capacity assessments
  • monitor market indicators
  • use price efficiency indicators.

Evidence and monitoring guide

The Guide on Evidence and Monitoring is available on the Ministry for the Environment’s website. It should be read alongside the Development Feasibility Tool and the Urban Development Capacity Dashboard (available on this page).

National Policy Statement on Urban Development Capacity: Guide on Evidence and Monitoring

The evidence and monitoring guidance is in 6 parts:

  • Part 1: Introductory guide on evidence and monitoring
  • Part 2: Assessing demand and development capacity for housing
  • Part 3: Assessing demand and development capacity for business
  • Part 4: Business and housing interactions
  • Part 5: Monitoring market indicators
  • Part 6: Using price efficiency indicators

Development feasibility tool

This spreadsheet model can help local authorities determine how much development capacity — enabled in their plans and taking costs and revenues into account — would be feasible for a developer to develop in their area.

It can be used on a stand-alone basis to understand the development feasibility of representative sites in specific greenfield or brownfield areas.

NPS-UDC Development Feasibility Tool  [EXCEL, 1.1 MB]

Urban Development Capacity dashboard

The Urban Development Capacity dashboard provides a range of market and price efficiency indicators that local authorities are required to monitor and use when implementing the NPS-UDC. These indicators help Councils understand how their local markets are responding to growth.

Urban Development Capacity dashboard

Guidance on future development strategies and minimum development capacity targets

In the National Policy Statement on Urban Development Capacity (NPS-UDC), 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.

Minimum targets for sufficient, feasible development capacity for housing (policies PC5 - PC11) are intended to clearly show the level of demand for housing needed in the medium and long term, at a regional and district level.

The NPS-UDC requires local authorities whose jurisdiction includes a high-growth urban area to complete a future development strategy and set minimum targets for development capacity for housing by December 2018.

Guidance is provided in the following documents:

Future development strategies

Future development strategies:

  • provide certainty to the community and stakeholders about where and when future urban development is likely to occur
  • are responsive to changing circumstances
  • inform decision-making by local authorities and infrastructure providers
  • demonstrate that there will be sufficient development capacity opportunities enabled through local authorities’ district plans, Long Term Plans and infrastructure strategies.

Development and content of future development strategies

Future development strategies should be developed:

  • collaboratively by all local authorities that share jurisdiction over the geographical area of focus
  • in consultation with infrastructure providers, other stakeholders, and the community.

The content of a future development strategy includes descriptions of:

  • minimum targets for sufficient, feasible development capacity for housing
  • evidence underpinning the strategy
  • the location, timing and sequence of development capacity, using maps and tables
  • the infrastructure and implementation actions required to support development capacity
  • how the strategy will respond to changes in demand or land owners’ intentions
  • how consultation was carried out.


Published: May 18, 2020