Responding to gentrification has become a key planning issue for many urban municipalities. Local governments need to balance the often-competing agendas of urban regeneration, social inclusion and arts access and participation. This paper argues that arts and cultural units within local government bear the impact of such tensions. More importantly, however, local government policies and their implementation represent a third position in the polarised discussion on the cultural impact of gentrification. The example discussed here is the rapidly gentrifying City of Maribyrnong in Melbourne's western suburbs: a municipality where any potential realisation of the economic benefits of gentrification is balanced against the needs of a significant population of resident professional artists, and the social inclusion needs of socio-economically disadvantaged residents. Maribyrnong's arts and cultural unit, like those within many municipalities in the developed world, has had to develop cultural policies and plans as tools for negotiating complex relationships and diverse needs of community members by considering the economic, social and cultural benefits of the arts for all residents.
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