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This paper addresses the challenges facing the strata sector in Sydney in the context of current Australian metropolitan planning strategies promoting increased urban consolidation. It argues that the current focus on higher density development is vulnerable to challenges of regulation, representation and termination in strata developments. Furthermore, the increasing size and complexity of strata schemes as well as the existence of ageing strata stock are placing pressure on the strata title system in NSW and these problems are likely to escalate as an increasing proportion of the population move into strata. Therefore, it is essential to comprehend the issues facing strata developments if they are to be effectively tackled. The concept of ‘governance’ provides one mechanism for improving this understanding.