This unprecedented gathering in Canberra, of the nation’s 565 local councils, to be held on November 28, is seen as the Rudd Government’s next step in forging a new, nation-building partnership with local communities.

This 'new partnership', as the government press release calls it, is seen as the most significant step forward for local government since the 1970s, when the then Labor Government introduced Financial Assistance Grants to support services at the local government level.

The one-day meeting will address issues of national and local significance, including:

• Building national and local infrastructure to boost our economic capacity and improve the quality of life in our communities.

• Tackling challenges facing major cities and growth corridors, including urban congestion, urban planning and design.

• Steps towards constitutional recognition for local government.

The Rudd Government says it recognises the rising cost of infrastructure provision and growing demand for services in local communities.

A 2006 PricewaterhouseCoopers report estimated a $1.1 billion annual under-spend in community infrastructure renewals by local government.

A 2008 Productivity Commission report found that 20pc of local councils relied on Commonwealth and State grants for half of their revenue.