On the 14 August 2007 the Labor Government established the Department of Planning and Community Development (DPCD) under Section 10 of the Public Administration Act 2004 (Victorian Government Gazette, S 189). This change followed a cabinet reshuffle after the resignation of then Premier Bracks and the appointment of John Brumby as Premier (Victorian Government Gazette, S 181 and 184). The changes were announced on 2 August by Premier Brumby.

The DPCD was formed by combining the Office of Planning and Urban Design with the core community development functions of the former Department for Victorian Communities. Heritage Victoria was transferred from the Department of Sustainibility and the Environment to be incorporated into the DPCD's Planning and Local Government group.

At the time of establishment the DPCD reported to the following ministers: Planning; Community Development; Multicultural Affairs; Veterans' Affairs; Skills and Workplace Participation (Adult, Community and Further Education); Sport Recreation and Youth Affairs; Women's Affairs; Community Services (Office for Disability); Senior Victorians; Local Government; Aboriginal Affairs.

The five organisational groups within the new Department comprised: Planning and Local Government; Community Development including Sport and Recreation Victoria; Strategic Policy, Research and Forecasting; People and Community Advocacy; Corporate, Organisational Development and Communications. The Ministerial Taskforce on Aboriginal Affairs was a separate entity to the divisions and directly reported to the Secretary of the Department.

In 2008 the function Sport and Recreation Victoria became a separate division from Community Development. The other five groups within the Department did not change.

In September 2008 the Secretary of DPCD's function of providing financial accounts and reports under the Planning Provisions of the Planning and Environment Act 1987 (Clause 66.02-3 and Clause .02-7) was transferred to the Secretary of the Department of Sustainability and Environment through Administrative Arrangements Order No. 200 dated 14 October 2008.

In September 2009 a new Local Government Investigations and Compliance Inspectorate (LGICI) was established, with the administrative arrangements coming into effect on the 1 September 2009 through Administrative Arrangements Order No. 202 of 2009. This administrative office was a separate entity to the rest of the department with the Chief Municipal Inspector directly reporting directly to the Secretary of DPCD. The Ministerial Taskforce on Aboriginal Affairs was the other continuing entity which reported directly to the Secretary of DPCD.

On the 18 December 2009 under the Public Administration Act 2004 an Establishment of Administrative Office Order in Council notice in the Victorian Government Gazette G 51 records that the Victorian Multicultural Commission was moved to the Department of Premier and Cabinet (DPC). This transfer of function from DPCD to DPC coincided with portfolio of Multicultural Affairs moving to DPC. In this instance there are no Administrative Orders or Minister of the Crown Changes (the ministerial portfolio did not change) in the Victorian Government Gazettes.

On the 20 January 2010 there was a cabinet reshuffle after a minister's resignation. Consequent to the MOG changes the new portfolio of The Respect Agenda was created (Special Gazette S25 2010). The Respect Secretariat was established within the DPCD's division of Strategic Policy, Research and Forecasting.

In 2010 the DPCD then reported to the following ministers: Planning; The Respect Agenda; Community Development; Local Government; Aboriginal Affairs; Sport, Recreation and Youth Affairs; Skills and Workforce Participation (Adult, Community and Further Education); Women's Affairs; Community Services (Disability); Senior Victorians; Veterans' Affairs.

In 2010 DPCD was divided into six primary organisational groups: Planning and Local Government; Community Development; Sport and Recreation Victoria; People and Community Advocacy; Strategic Policy, Research and Forecasting; Corporate, Organisational Development and Communications.

In December 2010 under the new Baillieu ministry, DPCD took on the following functions: Regional Development Victoria moved from the Department of Innovation, Industry and Regional Development; integrated transport and land-use planning from Department of Transport. As a result of DPCD receiving the function Regional Development Victoria, the regional teams from the Community Development group were amalgamated. A new Peri-Urban council unit was established within DPCD to help Councils with long-term strategic and structure planning, also a housing affordability unit.

With the MOG changes several functions were transferred from DPCD to other departments. The Office for Youth, the Office for Women's Policy and the Office for Disability all moved to the Department of Human Services (DHS). The core functions and resources from DPCD's Community Development group relating to disadvantage and the Neighbourhood Program (comprising Community Renewal, Micro Finance Hubs, Men's Sheds, Men's Building Bridges bushfire recovery program, Neighbourhood Houses), also moved to DHS.

Other MOG changes comprised: Office of Senior Victorians within the People and Community Advocacy group transfers to the Department of Health. The Adult Community and Further Education unit was transferred to the Department of Education and Early Childhood Development. The administration of the Community Support Fund from the Community Development group was transferred to the Department of Treasury and Finance, although the investment functions remained with DPCD including the administration of the Victorian Community Support program (VCSG).

Under the new Baillieu ministry DPCD reported to the following ministers: Regional and Rural Development; Aboriginal Affairs; Local Government; Planning; Regional Cities; Sport and Recreation; Veteran's Affairs.

After the MOG changes in 2011 the DPCD comprised six organisational groups: Planning and Local Government; Sport and Recreation, Veteran's Affairs; Regional Development Victoria; Community Development and Regional Delivery; Corporate Services; Strategic Policy and Research.

Note: The Youth Affairs function after 2006 does not correlate with a related Victorian Record Group (VRG). The VRG 150 Employment and Youth Affairs spans the years 2002 to 2006. There is no Victorian Function (VF) for Veteran's Affairs which is a current function of DPCD in 2011.