Over the last decade there has been increasing pressure on Local Governments around the world to accommodate principles of Ecologically Sustainable Development (ESD) within their urban policies. In Australia much of this pressure on councils has derived from higher tiers of government. This paper explores the implementation of ESD at the local level, in particular with regard to the broader vision that emanated from the Commonwealth’s National Strategy on Ecologically Sustainable Development (NSESD). Using a case study of Newcastle City, the paper demonstrates the folly in requiring unsupported councils to implement ESD strategies, no matter how enthusiastic these councils may be. Though Newcastle City gained prominence in the mid 1990s for its spirited pursuit of comprehensive ESD strategies, including industrial ecology ambitions, these unfortunately have fallen short of expectations. Given budgetary constraints, Newcastle Council reliance on an extensive partnership approach to implement its ESD strategies proved difficult to maintain over the longer term. The paper concludes that local government requires stronger support from higher tiers of government and a better revenue base if it is to be successful in delivering comprehensive ESD strategies. This is an important political economy issue in light of the state’s and in particular the Commonwealth government’s tentative commitment to sustainable development.