Last week, Premier John Brumby and Planning Minister Justin Madden unveiled plans to further intensify development in Victoria's 26 principal activity centres in response to an audit of Melbourne 2030.

As part of the $24 million package, planning decisions for PACs will be decided by a development assessment committee rather than the council.

The committee will have two local government nominees, two State Government nominees and an independent chair.

Mayor Paul Klisaris welcomed the move although he was satisfied with the rate of development in Glen Waverley's PAC - the Kingsway and The Glen entertainment precincts.

He said the "closer planning partnership'' with the State Government would ensure adequate business, residential and public infrastructure, pointing to their recent joint efforts to facilitate an eight-storey Hub development at Glen Waverley railway station as an example.

"The need for a co-ordinated State Government and council development is critical for the success and growth of centres such as Glen Waverley.''

He said the council, and in turn residents, would retain the right to determine the planning policy, or "the shape, height and uses for future developments''.

The Victorian Local Governance Association objected to the lack of consultation before the decision.

In an open letter to councils, VLGA president Beth Davidson said she was concerned about the lack of details on the powers, resourcing and evaluation of the new committees.

Mr Madden's spokeswoman, Sofia Dedes, said the results of the Melbourne 2030 audit showed the need for more housing in established areas to cater for the extra one million people in Victoria by 2020.

She said the Government anticipated the committees would reduce disputes and allow for more certainty in the decision-making process.

Opposition planning spokesman Matthew Guy said the State Government was moving towards removing all council planning powers.

"The failure of Melbourne 2030 is not the fault of councils or communities; it is the fault of the State Government's bad policy.''