Sydney Harbour is set for one of its biggest shake-ups in years, with the NSW Government confirming plans for a major new residential precinct in the Inner West. The proposal would see government-owned land at Glebe Island and White Bay gradually transformed into housing, public space and transport infrastructure, replacing parts of the existing industrial landscape over time. The project, known as Bays West, is expected to deliver up to 8,500 homes on the harbourfront, built above the future Bays West Metro Station currently under construction. Once complete, the area would sit around four kilometres from the CBD, positioning it as one of the closest large-scale housing expansions to the city centre in recent years. While full details are still emerging, here’s what we know about the new project.
Bays West is set to be Sydney’s new harbourside precinct

As part of the ambitious development, at least 10 per cent of the proposed homes are expected to be set aside as affordable housing, including for essential workers. The redevelopment will also see industrial activity scaled back at Glebe Island over the coming years, with some existing operations relocating elsewhere by 2030. White Bay, however, will continue functioning as a working harbour, meaning the area will remain a mix of residential and maritime activity rather than shifting entirely to housing.
The White Bay Cruise Terminal, which hosts more than 100 cruise ships each year, will remain in place. Planning Minister Paul Scully said the terminal would continue operating, with new shore-power facilities being installed to help reduce noise and emissions from docked vessels.
Premier Chris Minns described the redevelopment as “a better use for prime waterfront land,” adding that Sydney needs to “plan for the future” if it wants to remain a place young people and families can afford to live in.
Beyond housing, the proposal outlines new public access to the waterfront, along with parks and open green spaces across the site. Plans also include walking and cycling trails linking the precinct to surrounding suburbs. The nearby White Bay Power Station is expected to play a central role in the area’s future identity, with the historic building positioned as a cultural and events space overlooking the water. The area is also set to continue supporting major city events, including staging for New Year’s Eve and Vivid Sydney.
As the transformation unfolds, some of the most recognisable industrial features at Glebe Island, including the large silos visible from the Anzac Bridge, are expected to be removed.
Find more information about Bays West here.