ADELAIDE City Council this week said the "biggest overhaul of the city's planning laws in decades" will unlock millions of dollars in investment potential and transform the city centre.

The reforms to the planning and development system within the city follow an agreement between the State Government and the City of Adelaide.

Premier Jay Weatherill said the agreement with Adelaide City Council sets aside decades of differences to allow the state to progress.

"This plan was endorsed by the City Council and the consensus represents a new era in State Government and City Council co-operation," he said.

According to Adelaide City Council, the planning reforms include:

• A new Capital City Zone providing for framework to stimulate investment across the square mile, while also setting high standards for design excellence;
• A change in allowable building heights;
• A greater mix of uses (housing, shops, cafes, restaurants and offices);
• Better links between ground floors and public spaces and more vibrant main streets;
• Better defined boulevards (such as King William, Grote and Wakefield streets);
• Activation of the city squares and park lands;
• Innovative development on 'catalyst sites' that encourage more vibrant neighbourhoods;
• Quality outcomes with design at the forefront of the planning process through the establishment of a new city design review panel; and
• Faster decisions - answers within 10 days of lodgement with design review panel input.

Deputy Premier and Planning Minister John Rau said the reforms would bring more people into the city, more investment into the city and more jobs into the city.

"The measures outlined in this package represent a significant and dramatic reform to our city planning system, helping Adelaide to maintain and improve its edge as the nation's most liveable capital city—a place to live, work and do business."

Lord Mayor Stephen Yarwood said the Council was committed to working with the State Government to deliver a sustainable, liveable and competitive city for the benefit of all South Australians.

"Community input is vital - we want to make this new planning regime for Adelaide the best that it can possibly be for all South Australians. I strongly encourage community involvement in both consultation processes for the Capital City DPA and Council's proposed Heritage DPA," Mr Yarwood said.