The current development path of New South Wales is not sustainable from an economic, social and environmental perspective. This path creates polarisation and fragmentation. Over the past 20 years, we have witnessed growing disparities in employment, wealth, income and educational opportunities between regions and within regions in the state. The report argues that a new vision is required by all spheres of government, business and community to guide the development of New South Wales over the next 20 years. From a Local Government perspective, the case is put for the adoption of a "Whole of State Development" approach, where the local and regional dimension to state economic development is recognised and emphasised in new policy directions. The "Whole of State Development" (WSD) approach aims to ensure that all New South Wales regions share in the benefits of globalisation and the digital revolution. Measures are required to build the knowledge base, infrastucture and innovative capacity of all regions. The new approach requires a major resource commitment and strategic co-ordination from all spheres of government. Local Government seeks to be a pro-active partner in this process. The WSD involves devolution of responsibilities and resources to regions but it does not involve a reduction of the role of government. This is a revised version of a document prepared for the NSW Local Government and Shires Associations, and endorsed by their State Assembly in July 2000. The author would like to thank the Associations for permission to reprint it.