Water performance will be an important design criterion for urban development in Australia’s cities, to mitigate the adverse impacts of urban densification and expansion on hydrology, water quality, and water use efficiency. We demonstrate how one aspect, hydrological performance, can be quantified to inform more water-sensitive urban designs at the site scale. It is one of a set of indicators included in the Infill Development Evaluation Framework, which is being developed by the CRC for Water Sensitive Cities’ IRP4 research project. We compared the stormwater runoff, infiltration and evapotranspiration associated with two residential infill typologies (business-as-usual and water sensitive) on a hypothetical site in a couple of Australian climates (Adelaide and Brisbane), against a typical existing typology. Our findings suggest that water-sensitive design can support denser occupancy without further altering hydrological flows.