Definition: Local councils divide up the land in their council area into various designated uses, such as residential, commercial, industrial, rural, and so forth. The allowed use for a block of land is called the zoning. The zoning determines what you will be allowed to do with the land in regards to development, or redevelopment. For example, residential zoning typically does not allow shops or industrial development. Each council area has their own rules about what is acceptable in each zone, and where each zone exists. Changes in zoning is one factor that can dramatically affect land prices (either positively or negatively). It is worth understanding the local zoning for your properties, and any potential changes to the zoning that are being considered.