Planning takes place in NSW at three levels in the form of

State environmental planning policies (SEPPs)
Regional environmental plans (REPs)
Local environmental plans (LEPs)

The Department of Planning (previously the Department of Environment and Planning) is responsible for preparing state planning policies and the regional plans whilst local councils prepare local plans. The plans at each of these levels can;

address land use conflicts and perceived environmental problems in order to screen out inappropriate development, set guidelines for permissable development and identify development which may require more detailed environmental consideration before a decision is made. (Manual for EIA, DEP, p3)

The plans can indicate that certain types of development in certain areas will need a "development consent" before they get approval to go ahead.

In practice, the need to obtain development consent is usually delineated by zoning provisions within a local environmental plan (however, the provisions of relevant State policies or regional environmental plans must not be neglected). Local councils maintain a full record of environmental planning instruments which apply to their areas.

Where development consent is necessary, a development application must be made (usually to the relevant local council). Environmental impact assessment procedures are required to be followed where a development application is to be made in respect of "designated development".

Designated development identifies types or classes of development which, in the context of relevant environmental planning instruments, require rigours identification, consideration and assessment of environmental implications as part of decision-making.

(Manual for EIA, DEP, p3)

Environmental plans, by zoning particular areas for particular purposes and by controlling specific types of development in other areas, can control the nature and direction of development in a more wholistic and integrated way than could be acheived merely by the consideration of individual projects as they are proposed.

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Reference:

Department of Environment and Planning, Manual for Environmental Impact Assessment, Sydney 1985, reprinted 1990.