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Summary: Urban expansion is a major cause of land use change and presents a significant threat to biodiversity worldwide. Agricultural land is often acquired by local councils and developers to expand urban growth boundaries and establish new housing estates. However, many agricultural landscapes support high biodiversity values, especially farmlands that feature mosaics of native vegetation and keystone habitat such as hollow‐bearing trees. In south‐eastern Australia, many arboreal marsupials including the threatened Squirrel Glider (Petaurus norfolcensis) have populations within peri‐urban zones of expanding rural cities. A key challenge to planners, developers and conservation organisations is the need to maintain habitat for locally rare and threatened species as land undergoes changes in management. Critical to the sustainable development of peri‐urban landscapes is a thorough understanding of the distribution, habitat requirements and resources available to maintain and improve habitat for species dependent on limited resources such as tree cavities. In this management report, we present background information on an integrated research programme designed to evaluate potential impacts of urban development on fauna in the Albury Local Government Area, NSW. We mapped hollow‐bearing trees, erected nest boxes and monitored arboreal marsupials. Information presented in this report provides a blueprint for monitoring arboreal marsupials, including threatened species in other developing regions, and will assist the Albury‐Wodonga local governments in future planning of sustainable living environments. [ABSTRACT FROM AUTHOR]