A development application that includes as an integral component a sewerage system or works falling within the designated development categories in Schedule 3 to the Environmental Planning and Assessment Regulation 2000 is 'in respect of designated development' and requires an environmental impact statement, even if the primary purpose of the application is the erection of dwellings. The phrase 'in respect of' designated development is to be given a broad construction requiring only a relationship or connection between the application and the designated development. Clause 10.8(e) of the Blue Mountains LEP 1991, requiring reticulated sewerage, is a development standard amenable to a SEPP 1 objection. There is an unresolved tension in the law governing costs in LEC Class 1 proceedings between the Hunter Development approach and the approach articulated by McClellan CJ at CL.
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