Abstract: This paper examines the approaches taken to incorporate biodiversity conservation in the management of urban growth in Sydney. Problems associated with managing Sydney’s growth – particularly from the intersection of dealing with perceived property rights and the protection of natural resources such as biodiversity – are identified. The issues are illustrated through significant State Government development decisions relating to the retention of biodiversity in the new growth areas of Sydney. The singular reliance on traditional ‘command and control’ regulatory approaches as both a cause and ineffectual solution to the problems faced in biodiversity conservation is highlighted. Newer ‘market based’ mechanisms which are being introduced (e.g. biobanking) or should be adopted (e.g. transferable development rights), as well as management at the strategic level (e.g. biodiversity certification), are considered. This paper argues that to better integrate biodiversity conservation in Australian cities a mixed approach should be adopted in which a number of tools are utilised – and that this needs to occur in the context of a sound overarching strategic planning framework. This constitutes a hybrid approach involving a ‘fixed’ strategic spatial plan informing statutory-based regulation primarily through zoning and other development controls, augmented by a range of market based tools implemented through statute and common law measures such as conservation covenants.