Crown Lands

Leases overview

A lease is an authority we grant under the Crown Land Management Act 2016. It gives permission to exclusively occupy and use Crown land for a specified purpose and term.

Generally, leases are only granted over Crown land for commercial purposes, or community purposes where longer-term security is important.

We make leasing opportunities available through: 

  • public competition
  • closed tender
  • direct negotiation.

Find out more about leasing opportunities.

Where we determine the grant of a lease is not appropriate, the grant of a licence may be an alternative. The grant of a licence does not give exclusive use and possession of the land but can be issued for a specified purpose and term.

Lease types

General lease

We grant general leases for a range of commercial business or community purposes.

Western Division lands lease

We grant leases over land in the Western Division of NSW for grazing, agriculture and business.

The procurement code of practice

We assess whether a competitive process or direct negotiation will lead to a fair and open outcome.

Where a competitive process is undertaken we will only accept applicants who meet the requirements of the NSW Government Code of Practice for Procurement.

We identify the applicant offering the:

  • best value for money
  • probity
  • demonstrated honesty.

The procurement process needs to be and perceived to be fair and equitable.

Leasing Crown land by competitive process

  1. Call-to-market

    • We prepare a ‘call-to-market’ document that allows interested parties to participate in a competitive process to secure the right to negotiate a new lease of Crown land.
    • The competitive process considers third-party interests, statutory criteria and other matters.
    • The call-to-market contains information about the proposed activity for the Crown land.
    • The document includes selection criteria that all respondents must address.
  2. Selecting a successful tenderer

    • An evaluation panel evaluates all the submissions.
    • The panel recommends a preferred tenderer.
    • We notify all the tenderers if any problems are identified.
    • We reserve the right to discontinue a competitive process at any point.
  3. Negotiating the lease

    • Both parties agree on a negotiation protocol.
    • Both parties negotiate the lease terms and conditions within a set time.
  4. Agreeing to the lease

    • We draft a lease once the lease terms and conditions are agreed.
  5. Executing and registering the lease

    • The leaseholder executes the lease and issues it to us for execution by the delegate of the ministers.
    • We manage the registration of the lease with NSW Land Registry Services.

Leasing of Crown land by direct negotiation

  1. Applying to lease

    • We or an applicant can begin a proposal for direct negotiation.
    • The application must justify – with reference to the sale or lease of Crown land by direct negotiation policy – why direct negotiation is appropriate.
  2. Assessing the lease application

    • We assess the application to judge if direct negotiation is justified.
  3. Approval to enter into direct negotiations

    • If we approve the application, we write to you explaining the next steps.
    • If we decide that a lease by direct negotiations is not justified, we may refuse the application.
    • We may also refuse the application if it allocates the Crown land for an alternative purpose.
  4. Negotiating the lease

    • Both parties agree on a negotiation protocol.
    • Both parties negotiate the lease terms and conditions within a set time.
  5. Agreeing to the lease

    • We draft a lease once the lease terms and conditions are agreed.
  6. Executing and registering the lease

    • The leaseholder executes the lease and issues it to us for execution by the delegate of the minister.
    • We manage the registration of the lease with NSW Land Registry Services.