All in the name of amenity, of course. Inner-city councils like Yarra are pitching themselves against developers in a battle for the character of inner suburbs, taking a stand against the practicalities the state planning authority and government are forced to reckon with – that with a booming population, rising property prices and infrastructure pressures in the outer suburbs, something has to give. The latest incarnation of this battle is over a massive apartment development proposed for North Fitzroy, which would involve 476 apartments being built on a sprawling development on Queens Parade. You might think that building apartments on a public transport corridor, on the doorstep of the CBD, and within walking distance of civic facilities and the bustling retail hubs of Smith Street and Brunswick Street, would be supported by a progressive council like Yarra. Not so.

For all the Greens' talk about limiting urban sprawl, and encouraging walking and cycling communities, the Greens and Socialist-dominated council's response would move the population problem into someone else's backyard. Nor does it hurt that this row is taking place in Planning Minister Richard Wynne's seat of Richmond, which he continues to (just) defend against a rising Greens vote. The council would rightly say it is under no compunction to offer carte blanche to every new development. But is the best it can offer a four-storey blanket height limit on all new apartment developments across the municipality? The challenges are complex. As the Australian Financial Review detailed recently, most of Melbourne's population growth has been outside the so-called middle ring of suburbs; that is, within 10km of the city, and more than 20km from the city. The fastest growth has been in the outer suburbs, particularly in the west and outer south-east, where services like public transport have spectacularly failed to keep up with development.

According to Victorian government calculations, the inner suburbs' populations are predicted to rise by an average 3.14 per cent each year between 2011 and 2021. In Yarra, the population is projected to rise by 2 per cent each year. But it is in the so-called "heritage" suburbs of the inner north that development is being fought hardest. The Queens Parade development have raised the ire of a cashed-up and politically connected local community, which has the full backing of Yarra. While the council – which is home to the eclectic and creative suburbs of Fitzroy, Collingwood and Abbotsford – talks up its bohemian heart, its actions summon to mind the wealthy baby boomer who refuses to lend the kids a deposit to get their foot in to the market. The proposed apartment building would have properties selling from $450,000 for a modest flat, up to $2.5 million.

At $450,000, some first homebuyers might even have a shot at entering the market in North Fitzroy. It would almost be like old times. Faced with mounting community opposition to the apartment building, which represents the first high-rise development for North Fitzroy, Yarra Council simply failed to make a decision. When the frustrated developer turned instead to VCAT, the council was finally spurred into action. At its first post-election meeting on Wednesday night, the council resolved to fight the development and to spend more than $100,000 in public money fighting a case it must know it will probably lose. The council is riding a wave of community anger over inappropriate development, and concern about the undue influence of developers on planning decisions. In this sense it has widespread support – few would argue against its decision to call for the government to ban developer donations.

But its resolution to ask Mr Wynne to impose a four-storey height limit on virtually all new apartment developments in Yarra looks less like a decision that will benefit all of the community, and a lot more like a way to assuage the NIMBYs. Bianca Hall is a staff writer.