The concept of net zero energy and zero emission home has been a goal for those involved in the sustainable building industry. ills now becoming a reality in many parts of the world with an integrated approach of passive design, energy efficient appliances and local renewable generation. The paper describes the activities in Australia focussing on reducing energy use from the housing sector. It describes the regulatory approach of energy performance for housing which involves developing a house energy rating tool covering the building envelope as well as major energy consuming appliances. It also describes the implementation process which comprises gradually more stringent regulations coupled with financial inducements. The paper describes a world leading new Australian housing development where net zero energy homes are being built and enjoyed. It tells the story of how this outcome is being achieved starting with the planning process and developing environmental guidelines. The paper describes the innovations being used in order to achieve net zero energy homes and reports on energy monitoring results and feedback from householders. (C) 2012 Elsevier Ltd. All rights reserved.