The Department of Planning and Community Development provides guidance and regulation for development in the City by long and short range planning analyses. City wide zoning and subdivision administration, soil erosion and sedimentation control administration, Chesapeake Bay Act administration and economic development functions are performed by this department. The Director of Planning and Community Development serves as staff support for the City's Planning Commission, Board of Zoning Appeals, Architectural Review Board, and as the City's liaison for technical planning and transportation issues with Crater District Planning Commission, the Appomattox Basin Industrial Development Corporation and state and federal agencies. The Office of Building Inspections is a division of the Department of Planning and Community Development.

The Director of Planning and Community Development, in coordination with the City Manager, serves to function as a director for economic development activities. The Planning Department maintains demographics and census information, traffic counts, site development standards and plan of development forms. The Director of Planning assists in coordination for Planning Commission and City department review of proposed site plans for new development or redevelopment of existing sites.

The Department of Planning and Community Development also assists existing businesses and industries located in Colonial Heights with any business related issues.