Port Kennedy's coastal front is set to be transformed with the finalisation of a land transfer between the State Government and the developer Western Australia Beach and Golf Resort.
The project will see approximately 66 hectares of land developed over the next decade to deliver approximately 900 residential lots and new local community facilities.
The existing golf course will be retained and improved, with a new main street and town centre comprising a mix of offices and shops.
Plans also include a $15 million public works program with a new clubhouse, restaurant and function spaces, beach upgrades, boat moorings and a public jetty.
Subject to development approvals, residential lots will range from 180 to 600 square meters providing for a diversity of housing choice.
An estimated 400 local jobs are expected to be created through development of the lots and associated community infrastructure.
The agreement requires a new north-south coastal road to be built in the first stage of development to provide two road access points for emergency fire response.
Lands Minister Ben Wyatt said it took nearly three decades of negotiations to finalise a long-term deal.
"This long-awaited project will not only revive the coastal landscape of Port Kennedy but will create much needed community infrastructure and local jobs for the area," he said.
Planning Minister Rita Saffioti said it would also boost the local economy.
"We must plan for future employment and infill development opportunities that are close to public transport and are where people want to live, in growing suburbs like Port Kennedy," she said.
The City of Rockingham will invite public comment on a local structure plan in the coming weeks, which will then go to the Western Australian Planning Commission for final approval.
Kennedy Bay's first lots are expected to be released in early 2022, and the new clubhouse is due to open late next year.