One of the major issues facing Mordialloc as a designated activity node will be high rise buildings in the node and new or expanded commercial developments on foreshore Crown land.

The idea of 'activity nodes' around Port Phillip Bay originated as a result of the Labor Government's 1989 document Making the Most of the Bay. This idea has been adopted by the present Coalition government and recycled.

Activity nodes are to be targeted for foreshore development and commercialization, supposedly leaving the coastline between each node free from pressure. In fact, developments on the foreshore are still permitted outside the activity node.

While the two storey height limit along the 13 km of foreshore in the City of Kingston remains in place at present, the height limit has been lifted in the Mordialloc Activity Node - the area closest to the pier and creek. Bayside Council has been asked to justify their two storey height limit on residential development. This raises concerns for all bayside residents that a wall of high rise development will spread beyond the City of Port Phillip (St Kilda) and right around the Bay.
 

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