This paper is an exploration of the way the new political economy approaches in the social sciences can be developed to provide a more robust knowledge-base for local land-use planning. Consideration is given to present deficiencies in our understanding and their consequences. There then follows a review of recent developments within political economy and their significance for understanding land-use policy programmes and outcomes. The potential of the approach for addressing methodological issues in the field is then examined, with a particular focus on the importance of a process emphasis, on identifying choices within structural limitations, and on evaluating outcomes.