The issue was raised by city development manager Anna Johnson as councillors yesterday discussed a draft submission to a Ministry for the Environment consultation document titled: "Transforming the resource management system: opportunities for change".
In the draft submission, the Dunedin City Council recommended that urban planning functions stay with district councils in the case of medium-sized and large cities and fast-growing towns.
When questioned about why this was, Dr Johnson talked about the benefits of centralisation in achieving things quickly and cost-effectively.
She said a balance needed to be achieved in the approach taken by large cities and those in small cities.
"It is difficult for small councils to have adequate staff and resources to undertake all of their town planning. In those cases it may be beneficial to take the regional approach."
Cr Jim O’Malley said there was a potential loss of localism and local decision-making if smaller places had regional councils carry out planning.
When efficiencies were made, it often meant handing over authority, he said.
Mayor Aaron Hawkins said the reform was an opportunity to look at the greater purpose of the RMA.
He said town planning was one of the greatest contributions the council could make towards a zero-carbon future.
"This work is important in making sure the planning
frameworks we operate under give us the tools to let us do that."
Freeing up land was not the only option for addressing residential capacity shortfalls, he said.
All voted to approve the submission.