Last week, Premier John Brumby and Planning Minister Justin Madden unveiled plans to further intensify development in Victoria's 26 principal activity centres in response to an audit of Melbourne 2030.

As part of the $24 million package, planning decisions for PACs will be decided by a development assessment committee rather than the council.

The committee will have two local government nominees, two State Government nominees and an independent chair.

Mayor Tony Dib said he did not like the idea.

"I don't think the State Government should get involved in Maroondah planning ideas. That is why local government is here. We should be left alone to make decisions on our own.''

Cr Dib said while the council was yet to be briefed on any implications it was certain Ringwood Transit City plans would not be affected.

"Given that the precinct plans for the Ringwood town centre were approved and the work undertaken by council with the State Government, over the past five years, putting in place appropriate zoning and amendments to our planning scheme. We have all the ingredients in place for a ready-made successful transit city.''

The Victorian Local Governance Association objected to the lack of consultation before the decision.

In an open letter to councils, VLGA president Beth Davidson said she was concerned about the lack of details on the powers, resourcing and evaluation of the new committees.

Mr Madden's spokeswoman, Sofia Dedes, said the results of the Melbourne 2030 audit showed the need for more housing in established areas to cater for the extra one million people in Victoria by 2020.

She said the Government anticipated the committees would reduce disputes and allow for more certainty in the decision-making process.

Opposition planning spokesman Matthew Guy said the State Government was moving towards removing all council planning powers.

"The failure of Melbourne 2030 is not the fault of councils or communities, it is the fault of the State Government's bad policy.''

Planning expert Bob Birrell, director of Monash University's Centre for Population and Urban Research, said the State Government should put more funding into principal activity centres.

He said it was time for the State Government to "put its money where its mouth is'' to ensure more high-density housing in the area.