Inner Melbourne Train and Tram Zone

What is the Train and Tram Zone Activity Centres Program?

Housing is one of the biggest challenges we face in Victoria. By 2051, metropolitan Melbourne will need around 1.8 million homes. Everyone should have the opportunity to live in a well-designed home, at an affordable price, in a place they can thrive.

However, Melbourne can't just keep growing out.

That's why we’re planning for homes in and around 60 train and tram zone activity centres, encouraging more than 300,000 homes to be built close to public transport, jobs and services.

We’re investigating where new homes can go and what kinds of homes are most suitable for each area, by seeking to change planning rules to make it easier for more homes to be built.

Melbourne’s train network has completely transformed over the past ten years, with more frequent services, more than 50 new or upgraded stations, 88 level crossings removed, and the Metro Tunnel now open.

The program will allow us to maximise the use of existing infrastructure and public transport. The program is one of the key initiatives of Plan for Victoria, the Victorian Government’s 30-year strategic land use plan.

What is the Inner Melbourne Train and Tram Zone?

We're piloting a new model for train and tram zone activity centres in the area that is supported by more trains and trams than anywhere else in Victoria: Melbourne’s inner city.

Two of the 60 centres in the Train and Tram Zone Activity Centres Program are:

• Inner Melbourne (City of Melbourne)
• Inner Melbourne (City of Yarra)

Together, these two centres are the Inner Melbourne Train and Tram Zone.

These areas are already built up, and in many places benefit from zoning allowing thousands of homes. But there are still under-utilised and under-zoned pockets that could provide more homes and opportunities for Victorians.

New planning controls are needed to support more homes in inner Melbourne and the Department of Transport and Planning, the City of Melbourne, and City of Yarra are working to deliver them.

How is this different to other train and tram zone activity centres?

Planning for the Inner Melbourne Train and Tram Zone will be different to the standard activity centre planning process.

As part of the Train and Tram Zone Activity Centres Program, we have created a purpose-built new planning control called the Built Form Overlay. The Built Form Overlay sets building height and design controls, and it introduces a streamlined approval process for new homes.

The City of Melbourne and City of Yarra have undertaken significant work to allow for more people to live in inner Melbourne. Our planning will build on the council’s work to apply the Built Form Overlay to appropriate locations, to help get more homes built faster in the places people want to live.

Current projects

The first locations we are planning for in the Inner Melbourne Train and Tram Zone are:

• Macaulay, along the Upfield line in North Melbourne and Kensington
• Fitzroy and Collingwood, including Brunswick Street, Gertrude Street, Smith Street, and Victoria Parade
• Richmond, along Bridge Road and Victoria Street
• Alphington, along Heidelberg Road

The City of Melbourne and City of Yarra have already developed draft plans for these locations, with proposed new building heights and design controls. We’re picking up these plans and delivering them using our Built Form Overlay.

Find out more about the councils’ plans for these locations:

• Amendment C417melb - Macaulay
• Amendment C271yara - Fitzroy & Collingwood
• Amendment C291yara - Bridge Road & Victoria Street
• Amendment C273yara - Heidelberg Road

Two of these projects are being considered by independent committees, who held public hearings in April and May, and are now preparing advice to the Minister for Planning.

Find out more about the independent committees here:

• Macaulay Structure Plan Advisory Committee
• Yarra Activity Centres Standing Advisory Committee

Page last updated: 14/05/26