This thesis aims to ascertain the pivotal issues that are of most significance for economic development in regional Australia. To understand these issues, it is necessary to understand prevailing economic development theories which have been traditionally considered in a nation’s policymaking. A review of a wide range of theories revealed that no single theory or set of theories provides desired outcomes from the perspective of long-term economic development of a nation given its existing structure. Researchers and policymakers throughout the world are engaged in searching for suitable options, and the ‘regional economic development with local planning’ approach for regional policymaking has been identified as a suitable option for a developed nation. The tested hypothesis of this thesis indicates that to help accelerate a smooth long-term development process of regional Australia, a suitably designed local planning approach is necessary. Simultaneously, providing an improved coordination mechanism is vital. Establishing an independent regional institutional setup throughout regional Australia should be given greater consideration as a priority issue / Master of Commerce (Hons)