The Planning Act (Ontario) is the cornerstone of land use planning in the province, establishing a framework to balance development with environmental, economic, and social priorities. For real estate lawyers, its provisions significantly shape transactional strategies, compliance obligations, and dispute resolution processes.

Planning Act, R.S.O. 1990, c. P.13

• Governs official plans (municipal blueprints for growth) and zoning by-laws, which dictate permissible land uses, density, and development standards.
• Requires alignment of development with provincial priorities, such as protecting ecological systems, promoting affordable housing, and ensuring sustainable infrastructure.

• Mandates that planning decisions consider matters of provincial interest (e.g., climate resilience, transit-oriented development, and accessibility).
• Includes inclusionary zoning policies in designated areas, requiring affordable housing units in residential projects.

• Establishes procedures for site plan control, subdivision approvals, and development consents, often involving public consultation.
• Allows appeals to the Ontario Land Tribunal (OLT) if councils fail to act or decisions are contested.

Municipalities wield significant authority under the Planning Act to regulate land use and development, which profoundly impacts real estate transactions involving the division or amalgamation of land/lots. These powers, combined with statutory restrictions, shape the feasibility, compliance obligations, and risk profiles of such transactions.