Legislation introduced to the NSW parliament has reduced the powers of joint regional planning panels.
These panels have been stripped of responsibility for private sector projects that are valued at less than $20 million (£13 million).
"Most projects dealt with by these panels will be handed back to local politicians to decide," said the Urban Taskforce's chief executive, Aaron Gadiel.
He explained that the chairperson of each panel will only be appointed if they have been approved by the local government and Shires Associations.
"The panel's majority will be local government nominees, rather than independents," Mr Gadiel added.
Earlier this month, property researcher RP Data told the Australian newspaper that NSW has the strongest regional housing market in Australia.
The firm said that values across the state's regional towns and cities increased by 0.9 per cent in the 12 months up to this April.
Posted by Ravin Chatlani