Grange Planning Brain

title: Merrimu Precinct Structure Plan and Development Contributions Plan council: moorabool state: vic category: growth-area classification: MAJOR status: exhibited last_compiled: 2026-05-31 source_docs:

  • agenda-1-april-2026.pdf
  • attachments-1-april-2026.pdf
  • minutes-omc-1-april-2026.pdf
  • web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt
  • housing_bacchus_marsh.pdf
  • Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf
  • Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf

Merrimu Precinct Structure Plan and Development Contributions Plan

The Merrimu PSP is the main residential growth mechanism for north-east Bacchus Marsh: it converts a 906.64 hectare plateau precinct into a planned urban area with 8,063 dwellings, an estimated 24,189 residents, and 1,800 local jobs, but only 425.78 hectares, or 46.96 percent of the precinct, is counted as net developable area after transport, schools, community facilities, open space, conservation, drainage and other encumbered land are removed (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.18; Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.20). Its planning effect depends on Amendment C109moor inserting the Urban Growth Zone, a Development Contributions Plan Overlay, public acquisition overlays, native vegetation controls, incorporated PSP/DCP/NVPP documents and related referral and mapping controls into the Moorabool Planning Scheme (Source: agenda-1-april-2026.pdf, pp.11-12).

Background

Merrimu sits within the Bacchus Marsh Urban Growth Framework, which identified Merrimu Residential Growth Precinct, Parwan Employment Growth Precinct, Parwan Residential and Commercial Precinct, and Hopetoun Park North as new growth areas for Bacchus Marsh (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.6). The earlier Housing Bacchus Marsh to 2041 work framed Bacchus Marsh as a regional service centre facing population growth pressure, with low housing diversity and a need to direct growth to preferred locations while protecting sensitive areas (Source: housing_bacchus_marsh.pdf, p.4). The PSP therefore functions as the detailed statutory and infrastructure layer beneath that strategic growth framework rather than as a standalone estate plan (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.4-5).

The project has had a long preparation path. Council reported that DTP-New Communities, formerly the VPA, commenced work on the Merrimu, Parwan Employment and Parwan Station PSPs in 2020; the three Bacchus Marsh PSPs were paused in July 2023 after the Victorian Grassland Earless Dragon was discovered in January 2023; and Merrimu returned to the VPA work program in October 2024 (Source: agenda-1-april-2026.pdf, pp.10-11). Public consultation on draft Amendment C109moor opened on 6 March 2026 and closed in early April 2026, after which the VPA project page stated that submissions were being reviewed and submitters would be contacted as required (Source: minutes-omc-1-april-2026.pdf, p.7; Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

Analysis

Land Supply, Density and Yield

The central mechanism is simple: the PSP uses a very large gross precinct to produce a more limited residential development platform after landscape, ecological, infrastructure and edge constraints are taken out. The DCP land budget records 906.64 hectares total precinct area, 538.51 hectares gross developable area and 425.78 hectares NDA, which means slightly less than half of the mapped PSP area is levy-bearing developable land (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.20). The main deductions are not minor: open space totals 382.80 hectares, including 187.14 hectares of landscape values, 59.69 hectares of waterway and drainage reserve, 40.72 hectares of conservation reserve, 27.01 hectares of sports reserve land, 22.98 hectares for Ta Pinu Shrine, 22.25 hectares of encumbered linear open space and 20.56 hectares of local network parks (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.21).

The dwelling yield is built from three density bands rather than a uniform density across the precinct. The PSP identifies 7.0 hectares of town centre catchment at 30 dwellings per net developable hectare for 210 dwellings, 157.9 hectares of amenity area at 25 dwellings per net developable hectare for 3,946 dwellings, and 260.4 hectares of balance land at 15 dwellings per net developable hectare for 3,906 dwellings (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.18). This structure means roughly half the homes are expected from the amenity areas around centres, open space and transport connections, while the larger balance area carries a lower density role at the edges and away from destinations (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.18).

At 8,063 dwellings and 24,189 people, the implied household assumption is 3 persons per dwelling, which is high enough to make school, open space and community infrastructure sequencing material rather than optional (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.18). Council framed the same 8,063 dwellings as approximately 40 percent of the Victorian Government housing target of 20,000 new dwellings for Moorabool by 2051, so the amendment is not just local expansion but a major contributor to the municipality’s state housing target (Source: agenda-1-april-2026.pdf, p.12).

The affordable housing setting is advisory rather than mandatory. The PSP objectives refer to an estimated target and mechanism for voluntary affordable housing, including social housing, and the guidance table nominates affordable housing demand at 12 percent of total dwellings, split between 2 percent subsidised market housing and 10 percent social housing (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.14,18). On 8,063 dwellings, that 12 percent guidance equates to about 968 affordable dwellings, but because the document uses encouragement language rather than a binding delivery obligation, the practical outcome depends on later permit negotiation, public or community housing partnerships, and any stronger wording introduced after exhibition (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.15,18; Source: agenda-1-april-2026.pdf, p.16).

Statutory Effect and Development Contributions

Amendment C109moor is the switch that turns the PSP from a strategic document into a permit decision framework. The amendment proposes to insert UGZ1, apply DCPO1 across the precinct, incorporate the Merrimu PSP, Merrimu DCP, Merrimu NVPP and Small Lot Housing Code, apply the Environmental Audit Overlay to land with high contamination potential, and add referral requirements near the Bacchus Marsh Eastern Link Road (Source: agenda-1-april-2026.pdf, pp.11-12). The PSP states that permit applications and permits must implement the PSP outcomes, while requirements must be adhered to and guidelines shape how discretion is exercised (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.4-5).

The DCP translates the urban structure into a levy system. The exhibited development infrastructure levy is 549,779 per net developable hectare, comprising 308,604 per NDHa for transport, 185,073 per NDHa for recreation and 58,095 per NDHa for community infrastructure (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.4). Across 425.78 net developable hectares, the DIL recovers 234.083 million, made up of 64.181 million for land and 169.903 million for construction (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.4). The community infrastructure levy is separate: 1,365.14 per dwelling, estimated to raise $11.007 million from 8,063 dwellings for three pavilion projects (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.4,30).

Transport is the largest DIL category. The DCP lists road projects totalling 68.175 million and intersection projects totalling 62.373 million, together accounting for about 130.548 million in recovered cost (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.27-29). The most expensive single road item is Buckleys Road at 18.406 million, followed by Flanagans Road at 13.383 million and the Escarpment Connector Road at 11.269 million (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.27). The largest intersection items are Lindsay Avenue/Lindsay Avenue Extension/Connector Road at 12.962 million, Flanagans Drive/Escarpment Connector at 10.593 million, and a two-connector-road signalised T-intersection at $8.688 million (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.28-29).

The DCP’s risk is that some cost inputs remain deliberately provisional. Appendix B states that transport costs use high benchmarks and are for exhibition purposes, are deliberately conservative, and are subject to amendment as consultant designs and cost estimates are prepared and finalised (Source: Merrimu-Development-Contributions-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.49-50). Council identified the same concern from the implementation side, requesting single adopted designs and cost sheets, land acquisition plans, aerial-photo overlays for intersection designs and reconciliation of unit costs where line items appear incorrect (Source: agenda-1-april-2026.pdf, p.16).

Infrastructure Dependencies and Sequencing

The transport dependency that dominates Merrimu is the Bacchus Marsh Eastern Link Road. The PSP notes that the precinct includes a key section of the proposed BMELR alignment, while the VPA page states that Option B Alternative between Bences Road and Gisborne Road has been selected as the preferred alignment (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.7; Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt). Council’s submission requests that BMELR be referred to the Minister for Planning to determine whether an Environment Effects Statement is required and that a Public Acquisition Overlay reserve land for the road (Source: agenda-1-april-2026.pdf, p.15). Council also seeks a residential lot limit if BMELR is not constructed, with potential external road network upgrades to manage modelled congestion before further development proceeds (Source: agenda-1-april-2026.pdf, p.15).

Within the precinct, staging guidance requires coordinated delivery of arterial connections, connector streets and bridges, street connections between properties, pedestrian and bicycle paths, drainage infrastructure, essential infrastructure, community infrastructure land, sports fields and local open space (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.61-62). Interim drainage is possible, but only where it manages stormwater and flood flows without adverse impacts, does not compromise ultimate Development Services Scheme assets, does not add DSS costs, and is replaced before the final subdivision stage for the relevant parcel (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.62). This means early stages can proceed before every ultimate basin or outfall is built, but only if Melbourne Water and the responsible authority accept the interim solution (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.9,62).

The DCP and amendment also create public acquisition consequences. PAO6 is proposed for drainage outfalls with Melbourne Water as acquiring authority, and PAO7 is proposed for road upgrades and intersections with Moorabool Shire Council as acquiring authority (Source: agenda-1-april-2026.pdf, pp.11-12). The PAOs reserve land for infrastructure delivery, but they also impose a long-duration planning burden on affected land until acquisition or removal occurs (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

Constraints: Landscape, Ecology, Cultural Heritage and Interfaces

The headline constraint is that Merrimu is an elevated plateau with steep escarpment edges overlooking Bacchus Marsh. The PSP records high ecological significance, including Natural Temperate Grassland of the Victorian Volcanic Plain, Golden Sun Moth, Spiny Rice Flower and potential Victorian Grassland Earless Dragon habitat, and states that conservation areas, buffers and habitat corridors are used to integrate those values into the urban form (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.7). The PSP also identifies gullies, erosion-affected escarpments, sodic soil and areas with potential Aboriginal cultural heritage values, which is why the urban pattern carries large landscape-value and conservation deductions rather than treating the whole plateau as a conventional subdivision field (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.7-8; Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

The eastern, southern and western interfaces each have a different planning mechanism. Long Forest Nature Reserve forms the eastern boundary and is treated as a significant cultural, ecological and bushfire interface (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.8). The Bacchus Marsh Irrigation District sits south of the precinct and is identified as high-value horticultural land where future development should not encroach on fertile agricultural land (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.7). Boral, Hanson and Barro sand quarries sit west of the PSP across Gisborne Road and are described as state-significant extractive resources with a default 500 metre buffer for sensitive uses (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.7). Council therefore asks that quarry buffer assessments for sensitive uses be reviewed with EPA involvement (Source: agenda-1-april-2026.pdf, p.16).

Cultural heritage remains a material source limit. The PSP states that the Registered Aboriginal Party is Wurundjeri Woi-wurrung Cultural Heritage Aboriginal Corporation and that the VPA has consulted WWCHAC and Traditional Custodians (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.8). The VPA project page states that a Cultural Values Assessment and Aboriginal Cultural Heritage Impact Assessment were not complete at the time of the project page capture, so the final cultural heritage response may still change precinct design, conservation boundaries or permit requirements (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

Current Status

As at the 1 April 2026 council meeting, Council adopted its submission requesting changes to Amendment C109moor and authorised officers to negotiate with DTP-New Communities and other stakeholders on issues raised by Council and by other submissions (Source: minutes-omc-1-april-2026.pdf, p.8). Council noted that unresolved submissions are likely to be referred to a Standing Advisory Committee and that Council would prepare a further submission for any SAC hearing (Source: minutes-omc-1-april-2026.pdf, p.8). The VPA project page captured on 31 May 2026 states that public consultation is closed and submissions are being reviewed, with Planning Panel/SAC, structure plan finalisation and ministerial consideration still listed as later steps (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

Dependencies

  • Blocks: Urban subdivision and development at Merrimu at PSP scale, DCP levy collection, PAO-based infrastructure acquisition, and NVPP-based native vegetation removal/retention controls depend on approval and gazettal of Amendment C109moor (Source: agenda-1-april-2026.pdf, pp.11-13).
  • Blocked by: Unresolved exhibition submissions, potential SAC advice, finalisation of DCP costing and acquisition plans, BMELR uncertainty, Melbourne Water drainage scheme refinement, and incomplete Aboriginal cultural heritage work may affect the final package (Source: minutes-omc-1-april-2026.pdf, p.8; Source: agenda-1-april-2026.pdf, pp.15-16; Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).
  • Informed by: The PSP says its background report and technical studies cover landform, biodiversity, drainage, open space, transport infrastructure, employment and community facilities, but the manifest only includes the exhibited PSP, DCP, VPA page, council agenda/minutes/attachments and Housing Bacchus Marsh to 2041 (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.9; Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).
  • Implements: The PSP implements the Bacchus Marsh Urban Growth Framework, Plan for Victoria, Victoria’s Housing Statement 2024-2034 and the Moorabool housing target context by creating a major greenfield housing precinct near Bacchus Marsh (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.6; Source: agenda-1-april-2026.pdf, p.12).
  • Conflicts with: The main tensions are between housing delivery and BMELR timing, quarry buffers, ecological conservation, escarpment/landscape protection, drainage land take, existing low-density interfaces and Council’s capacity to manage conservation reserves and long-term infrastructure maintenance (Source: agenda-1-april-2026.pdf, pp.15-17).

Merrimu depends on state and regional infrastructure actors rather than only Moorabool Shire. DTP-New Communities/VPA is the planning authority, Melbourne Water is the proposed acquiring authority for drainage outfalls, Head Transport for Victoria is proposed as a determining referral authority for applications within 100 metres of BMELR land, EPA is requested by Council for quarry-buffer assessment review, Southern Rural Water is relevant because PSP drainage outfalls must not connect into irrigation channels or pipes it manages, and WWCHAC is the Registered Aboriginal Party (Source: agenda-1-april-2026.pdf, pp.11-12,16; Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, pp.8,61). The Western Renewables Link alignment is also within the northern extent of the precinct and will require an easement response in subdivision and land-use planning (Source: Merrimu-Precinct-Structure-Plan-Draft-for-Public-Consultation-March-2026.pdf, p.8).

Gaps in This Analysis

The largest analytical gap is that the manifest does not include the full technical-report corpus listed on the VPA project page. Missing primary inputs include the VPA Background Report, Summary of Technical Reports, transport assessments, traffic modelling, ecological and VGED studies, IWM and drainage reports, utilities servicing assessment, land capability and sodic soils reports, landscape assessments, community infrastructure needs assessment, open space assessment, economic and retail studies, NVPP and cost-estimate reports (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt). Without those reports, this page can quantify the exhibited PSP/DCP structure and Council’s stated issues, but it cannot independently test modelled traffic thresholds, drainage basin sizing, sewer/water capacity, ecological offset quantities, land valuation assumptions, quarry impact modelling or detailed staging triggers (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

A second gap is post-exhibition material. The VPA page states submissions are under review, but the manifest does not include submissions, an officer response table, SAC referral material, SAC report, revised post-exhibition PSP/DCP or ministerial decision documents (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt). The current analysis should therefore be read as an exhibited-package assessment, not a final approved PSP assessment (Source: web-research-L0-vpa-merrimu-psp-and-dcp-project-page-42354b670b.txt).

Graph View