Draft Plan Released for Illawarra Shoalhaven Region

The NSW Government has released its draft plan for the Illawarra Shoalhaven region, outlining gits 20-year plan to drive growth in jobs, homes and community hubs, and infrastructure investment.

Draft Plan Released for Illawarra Shoalhaven Region

Image: Dorsa Hadi via Unsplash

With the region’s population expected to expand by 161,000 people by 2046, the draft plan establishes a clear framework to coordinate long-term housing, transport, health and education investments.

It has set clear goals to help deliver 117,000 more homes, more than 101,000 new jobs and mapped out the delivery of critical infrastructure such as transport, roads, schools, and health services to make sure communities across the region can continue to thrive.

Under the draft blueprint, approximately 80 per cent of new residential development will focus on existing urban centres such as Wollongong, Shellharbour, Bowral, Kiama and Nowra. For the first time, the regional framework incorporates the Wingecarribee LGA, which includes Bowral and Moss Vale, into the Illawarra Shoalhaven footprint, formally recognising its deepening economic and social ties to South West Sydney.

Image: Bayley Clark via Unsplash 

Minister for Planning and Public Spaces Paul Scully said the initiative provides a structured economic future for the coastal district. “Through its jobs targets, the plan is backing the region’s economic future,” Scully said. “It drives key employment precincts while also strengthening ties to the emerging innovation and investment hub that is Western Sydney Aerotropolis.”

Key employment anchors identified to spur economic growth include Port Kembla, the Wollongong Health Precinct, Shellharbour Airport, and industrial precincts surrounding Nowra. The strategy also outlines improved transport links connecting local hubs to the emerging Western Sydney Aerotropolis.

The plan also considers how the region’s environmental values can contribute to building economic growth, liveability and healthy communities and sets priorities to:

  • Increase the supply of more affordable, well located and diverse housing in Wollongong and other centres
  • Maximise the unique economic opportunities offered by advanced manufacturing, defence and renewable energy, leveraging industrial lands such as those in Port Kembla
  • Strengthen the strategic relationship between the region and south west Sydney
  • Grow the number of service jobs across health, knowledge-intensive industries and the arts and cultural sectors
  • Celebrate the region’s environmental identity and connections to the coast, escarpment and highlands, protecting these from urban uses by identifying an urban growth area.

Building on this the Plan will strengthen vibrant centres and public spaces across the region, including key destinations such as Wollongong Stadium and WIN Entertainment Centre, the Nowra Riverfront and Warrawong Parklands, alongside beaches, national parks, and other community spaces.

Image: Ben George via Unsplash 

Importantly, the Plan supports the delivery of Australia’s first Urban Renewable Energy Zone, helping position the Illawarra Shoalhaven at the centre of the state’s clean energy future.

The region was chosen for its proximity to major energy, port and transport infrastructure and its skilled workforce to deliver rooftop solar, home and community-scale batteries.

Under that plan, spare Crown land and commercial roof space will be used for renewable energy, with initial options delivered by 2030.

Once finalised, the Plan will make sure the region’s growth is well-planned and support a more connected coastline with liveable communities, backed by a strong economy. The community have until Monday, 28 September 2026 to have their say on the Plan.

Read the draft plan here: https://www.planning.nsw.gov.au/sites/default/files/2026-07/the-illawarra-shoalhaven-plan-draft.pdf

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