State government planning changes announced this week "won't significantly increase housing supply within Sutherland Shire", the council says.
However, the council has called for improvements to infrastructure, including roads, schools, parks and the the provision of services like water, sewage and power to meet population growth.
Planning Minister Paul Scully announced dual occupancies (duplexes), terraces and townhouses would be allowed in all R2 zones and mid-rise apartment blocks of four to six storeys near transport hubs and town centres in R3 medium density zones and appropriate employment zones.
Mr Scully said the R3 zone changes would mean "more housing just a short 10-minute walk (800m) from transport hubs, shops and amenities".
A council spokeswoman said Sutherland Shire already permitted dual occupancy and townhouse development in the R2 low density residential zone and most areas near stations were zoned E2 Commercial Centre.
"These changes, therefore, won't significantly increase housing supply within Sutherland Shire," she said.
"Sutherland Shire Council recognises that all tiers of government have a role to play in ensuring that housing supply keeps pace with demand, with council committed to playing its role in enabling the continued delivery of a range of quality, affordable housing options that offer diversity of choice to prospective home buyers and renters.
"Council is calling on the state government to invest in the infrastructure essential to support the delivery of any increase in population, delivering more rail services, better roads and increased capacity to local schools and hospitals to ensure the future needs of our growing community are adequately addressed."
Mr Scully said the government would amend a State Environmental Planning Policy (SEPP) to enact the changes he announced.
"If a local government's planning rules match - or go further than - this new NSW Government policy will not apply," he said.
The plans are due to be placed on public exhibition for feedback from next week.
The shire's draft long-term Housing Strategy, together with affordable housing incentives, are due to be considered at the December 11 council meeting.