The Government has moved away from the idea of creating a limited number of large-scale "growth gateways" through which economic prosperity could be spread to the regions.
According to a consultation paper launched last night by the Minister for the Environment, Mr Dempsey, the Government is now focusing on spreading growth through a greater number of smaller towns.
When linked together these towns would have the "critical mass" of population to sustain entrepreneurship and innovation without causing undue damage to the environment.
The approach, contained in the National Spatial Strategy, Indications of the Way Ahead was launched by Mr Dempsey in Charlestown, Co Mayo, last night.
The document will be circulated to business and community groups, regional authorities and county councils whose comments will be sought up to October 31st.
The final phase of the strategy will then take place - the identification of specific towns and villages which will act as catalysts for growth in their regions.
While the towns have yet to be identified, yesterday's launch was the result of almost 18 months of consultation and regional presentations by the spatial planning unit in the Department of the Environment.
The discussion document envisages the Republic as 12 "functional areas", where people live and work and interact socially.
It invited people to contribute suggestions on how they see growth being developed in their areas.
It lays out the issues in relation to population forecasts for the State over the next 20 years and poses questions as to where the population growth might reasonably be expected to live and work and what sort of quality of life might be expected as a result of those solutions.
Part of the problem identified by the document is the concentration of population on the east coast in one "functional area", indicated on the map, which stretches from just north of Enniscorthy in Co Wexford, to just south of Armagh in Northern Ireland.
The ultimate aim of the national spatial strategy is to bring people and their jobs closer together, reduce their commuting times on roads and rail, and stem the drift of population to the east.
The document has a Northern Ireland dimension and asks for input on how the effect of a city such as Derry may affect its hinterland in Donegal.
It also seeks input on development scenarios between Newry, Co Down, and Dundalk, Co Louth, as well as the Government's suggestion of an all-Ireland economy.
The document suggests that Dublin's role as the "prime economic engine" of the State came about because it had the critical mass of population necessary, as well as the infrastructure, healthcare, centres of learning and public and private transport systems.
In seeking to recreate these factors in other parts of the State, however, the discussion document notes that there are different levels of potential and different suitabilities, for example industrial or tourism development.
Each of these areas, it argues, can benefit from promotion and development tailored to fit their circumstances. The objectives of the national spatial strategy must be achieved, the Construction Industry Federation said in a statement last night.
The federation welcomed the publication of the consultation paper, saying it should lead to "a clearly focused road map" detailing where provisions would be made for new roads, new or improved railways, waste disposal facilities, new housing - including new towns or new areas of development - and playgrounds and other recreational areas.
The federation said the Government must remove the two-year restriction on the life of planning permission and restore full mortgage interest relief, if the target of building 500,000 homes in the period 2000-2006 was to succeed.
