The sustainable development of land for housing in Sydney is a complex and contentious issue which includes both the land supply process and issues and factors affecting demand. However, sustainable development increasingly depends upon consideration of how resources, including natural resources, are used or depleted.

Based upon the challenges for humans and human settlements brought on by climate change, this paper discusses whether the sustainable development of urban land can be regarded as merely an option, or whether it is a necessity. Current plans, strategies and programs for urban land development aspire to sustainability, but in view of the size of the problem and the need for a comprehensive response they may not be sufficient. Key performance indicators of trends for sustainability of human settlements are examined for greater metropolitan Sydney. In this context, the viability of continued or accelerated development of greenfield land at the urban fringe currently favoured by governments and developers is discussed.
Some examples of contained urban growth are identified and examined. The need for different approaches to the governance of sustainable urban development across governments and stakeholder groups including local communities is also discussed.