A measure backed by the South Australian Parliament to limit Adelaide's urban sprawl will shrink house block sizes and drive up prices, critics have said.

Key points: Food and wine production areas will not become housing estates of the future

Food and wine production areas will not become housing estates of the future Family First warns house blocks will get ever smaller and prices jump sharply

Family First warns house blocks will get ever smaller and prices jump sharply Greens failed to get additional planning protection for significant trees

The Legislative Council has approved introduction of a boundary through creation of an Environment and Food Production Area (EFPA).

Protection of the food and wine production areas to the north and south of Adelaide will also affect towns as far afield as Victor Harbor, Murray Bridge and Kapunda.

Government Upper House leader Kyam Maher said it was important to protect farmland and the rural landscape just beyond Adelaide.

"The EFPA will provide a 15-year supply of land for urban growth within greater Adelaide," he told Parliament.

"It will encourage building of new homes in our inner and middle-ring suburbs, something which market research shows is where more and more people want to live.

"Such infill development, compared to green field development, generates more jobs, costs less to service and provides more affordable living options."

'Plenty of space for expansion'

South Australian Greens leader Mark Parnell said Adelaide's population of 1.3 million could quadruple within its existing footprint if housing density kept increasing.

Adelaide has plenty of room for population expansion within current suburbs, the Greens say. ( ABC: Ashley Walsh )

"Adelaide will not continue to sprawl out into valuable farmland, chew up areas that could be used to grow food," he said.

"Adelaide is already one of the most sprawling and sparsely populated cities in the world, and there is plenty of space for expansion within the existing boundary."

Family First MLC Dennis Hood told Parliament his party opposed a boundary because it would put further pressure on house block sizes.

"We already have the smallest average block size in Australia and our square-metre price is the highest of fringe land in Australia," he said.

"The risk we run here is that the blocks will continue to decrease in size over time."

Property Council warns growth inflexible

Daniel Gannon of the Property Council warned Adelaide's growth would become inflexible with the imposition of a boundary.

"It will make it harder, not easier, to respond to demographic and economic changes," he said.

The State Government's first attempt to get the boundary bill through the Upper House failed last December when it was blocked by the Liberals, Family First and Independent MLC John Darley.

Mr Darley said he initially voted against the bill because it was being rushed ahead of Christmas and he had waited to be assured there would be adequate land supply within suburban Adelaide.

Mr Parnell said the Greens were disappointed their planning legislation amendments aimed at protecting significant trees had been overturned.

"It's a fight out there between urban development and these massive, majestic old trees, and the trees are losing," he said.

"At present if you build your house close to a large tree, then the tree has to go."

Mr Gannon said the Property Council considered that had been a win for common sense.

"It would introduce an onerous level of complexity for property owners," he said.

Existing laws which protect significant trees remain unchanged.