The County of Cumberland Planning Scheme had designated Lugarno as part of Sydney's green belt, which meant that land could not be subdivided into lots smaller than five acres. In the 1950's most families had a car, and as the East Hills railway line had improved public transport, Lugarno was now seen as a suitable suburb for commuters to live in. Applications for residential subdivisions were approved, and Lugarno changed from a semi-rural area with weekender's cottages to a residential suburb.
Small shopping centres began to develop in Lime Kiln Road and at Chivers Hill in the late 1950's. Laurie Thompson's Newsagency was the first shop at Chivers Hill, and five additional shops were built in 1959. One of these shops became Bill McAfee's Radio and TV shop. Those who did not own a television set would stand outside watching the television inside at night, and those with a set could take out insurance against their set breaking down, and the insurance would pay the repair bill. Chivers Hill was kerb and guttered, and Lime Kiln Road shops had a parking area sealed in 1962. The parking area at Chivers Hill was tar sealed in 1970, and a one way traffic rule introduced in 1973. The Lugarno Merchants Association was formed in August 1981. Lugarno's sophistication was confirmed by the opening of the Tuck-In steak house at Chivers Hill late in 1977, and Branco's seafood restaurant near Lugarno Boatshed two years later.
In 1961 the Lugarno Boatshed was purchased by Dereck and Gild Symons. Gilda continued to operate the shop at the Boatshed for the next 13 years. Dereck hired row boats and motor boats for fishing, and had a pier put in with a petrol bowser at the end for refuelling launches. On weekends and holidays he was assisted by Bobby Young. T. McCormick ran the Pottery Factory at the Boatshed where he made and sold pottery.
Sewerage first came to Lugarno in 1964, when the pipes reached Chivers Hill, and gradually it was extended until the large area known as Boggywell No. 3 was sewered in 1973.
Work on water reticulation was done in 1964, and in 1979 a larger main was laid from the Lugarno Pumping Station (in Forest Road, near Cypress Drive) to alleviate the problems with low water pressure experienced by homes in the higher areas of Lugarno.
Flourescent lighting was installed in Forest Road in 1968, and kerb and guttering in 1970 (to Lime Kiln Road), a footpath in 1975, and a divided road junction with Old Forest Road in 1977.
The AGL Gas Company extended their gas mains to Lugarno in 1995.