In March, 1985, the Environment Council of the European Communities adopted a ‘Directive concerning the assessment of the environmental effects of certain public and private projects’ after many years of deliberation. This directive, also referred to as the Environmental Impact Assessment (EIA) Directive, represents a major step forward in implementing community environment policy, and is the first example of Community land use planning legislation to be incorporated into national physical planning systems (Luxembourg, 1985). This paper discusses the rationale and scope of the Community environment policy and the place of the EIA directive within it; outlines the provisions of the directive itself and the changes resulting from the long period of negotiations prior to adoption; and discusses the process of incorporation into national planning legislation and potential impact of the directive. There is no reference to an environment policy in the Treaty of Rome, but a Community environment policy has been in operation since 1973.