This paper explores the interaction between rural development policy and planning policies for rural housing within the context of Ireland. Drawing on an interpretive approach to policy analysis, the paper examines competing narratives of 'the rural' within the policy arena that underpin a fragmented approach to rural sustainable development. The evidence points to a disconnection between these spheres of public policy marked by a strained relationship between rural communities and regulatory planning, not least with regard to the preferred shape of the rural settlement pattern. It is argued that any housing policy for rural areas must give full regard to the social, economic and cultural attributes of rural life and not just the criteria of environment and landscape. In this context, partnership based local planning processes would enable the exploration of competing rural narratives to be re-orientated towards local needs, capacities and the perspectives of local people and the adoption of cultural, environmental and community values within the policy process.