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Councils demand policy shift for Outer Western Sydney

Build Australia •
October 14, 2026 • 03:41 AM
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A coalition of seven local councils is calling on the New South Wales government to recognise Outer Western Sydney as a distinct region

Councils demand policy shift for Outer Western Sydney

A coalition of seven local councils is calling on the New South Wales government to recognise Outer Western Sydney as a distinct region and step up funding to keep pace with rapid growth.

The Outer Western Sydney Alliance (OWSA) argues that treating the broader area as a single region ignores the unique role the outer west plays in powering the state’s future. Home to more than one million residents, the area spans from the Blue Mountains and Hawkesbury-Nepean through to the Macarthur region.

OWSA Chair and Penrith Mayor Todd Carney described Outer Western Sydney as the “growth engine” of NSW.

“Outer Western Sydney plays a distinct and unique role,” Carney said.

“It’s where some of the nation’s fastest-growing communities, productive agricultural land, advanced manufacturing opportunities and a global airport intersect with a World Heritage Area.”

The region approved 7,193 dwellings in 2024–25, accounting for almost 39 per cent of Greater Sydney’s approvals, and grew to 8,821 approvals in FY2025–26. It is expected to absorb 38 per cent of Sydney’s future population expansion.

Major catalysts like Western Sydney International Airport and Bradfield City Centre are reshaping the economic landscape. However, OWSA warns that economic potential remains constrained by a lack of essential enabling infrastructure.

While the region holds over two-thirds of Sydney’s undeveloped employment land, generating AU$59 billion in annual output, only 3.2 per cent currently has both wastewater and B-Double road access.

To bridge the gap, OWSA is urging immediate state investment across ten priority areas. Key proposals include completing the Outer Western Sydney Metro North-South link between Campbelltown, Bradfield, St Marys, and Tallawong, alongside expanding rapid bus routes and critical road corridors.

“The question facing government is straightforward,” Cr Carney said.

“If this region is expected to carry a large share of Sydney’s housing growth, future workforce and economic opportunity, when will investment reflect that reality?”

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