It was hoped that increased teleworking would reduce traffic congestion leading to lower levels of greenhouse gas emissions, other air pollutants, storm water runoff and noise. However, despite recent technological advancements in telecommunication, telework adoption rates are still lower than initially projected and thus the purported benefits are also lower. The literature suggests that this is related to organisational and institutional barriers. This article examines two institutional issues that appear to be hindering telework at the local scale-land-use planning regulations and tax policies. These were two of the main issues identified through interviews with residents of two live/work communities, one in Australia and the other in the USA. Findings suggest that if policy-makers want to increase teleworking rates, attention should be focused on removing barriers created by local land-use planning regulations and tax policies. With the resurgent interest in telework as a result of the National Broadband Network, this article provides some timely advice to help decision-makers add value to this multi-billion dollar investment.