The period 1978–95 was one of rapid change for Adelaide City Council (ACC) in terms of city-state relations, planning controls, heritage protection, landscape and skyscape changes, demographic changes and the membership of ACC. In that period, ACC, the oldest municipal government in Australia, was far more autonomous than any other SA local government body because of its powers to control development under the City of Adelaide (Development Control) Act (1976) and its representation on the CAPC. This Dunstan Government legislation exempted Adelaide from the state planning controls affecting all other local governments through the South Australian Planning Act (1982). Under the 1976 statute, all development, including demolitions, within the municipality required approval by ACC, until new legislation passed by the state government came into effect in 1993.

In 1983, the Bannon government showed it would bypass city planning authority when it introduced the Adelaide Railway Station Environs Bill, giving the state government control over a major North Terrace project adjacent to the railway station. The project violated principles of the City of Adelaide Plan, triggering strong opposition from some members of ACC. From that time, ACC was wary of criticising state government projects in Adelaide, knowing the government could again legislate to circumvent council powers.