The ULDA operates under the Urban Land Development Authority Act 2007 (ULDA Act).  The department also administers the ULDA Act and the Urban Land Development Authority Regulation 2008 and is responsible for advising government in relation to specific activities of the ULDA such as the declaration of urban development areas, adoption of interim land use plans and preparation of development schemes for urban development areas.

The ULDA's role is to plan, carry out and co-ordinate the development of land in ‘urban development areas’ declared by the government. As well as planning and development assessment, the ULDA also develops key sites and priority infrastructure within declared urban development areas in accordance with identified government objectives.