The indiscriminate division of land without anyone's approval could have a long-term, negative impacts on your community. For example, it could result in compromised well water from too many septic systems, or unsafe road access, etc. Or it might result in damage to the natural environment including lakes, because lots are too small to meet adequate setbacks and sewage disposal systems.
Official approval is required to ensure that:
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land severances are considered within an established community planning framework;
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new lots and new land uses do not conflict with the overall future planning goals and policies of your community;
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consideration is given to the effects of the division of land on the site, on the neighbours and on the community as a whole.