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 is different from 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.

Melbourne City Council and Yarra City Council have undertaken significant work to allow for more people to live in inner Melbourne.

Planning in the Inner Melbourne Train and Tram Zone builds on the councils’ work by considering the application of purpose-built planning controls which aim to facilitate:

• greater certainty about development in the area
• a mix of homes
• local businesses and community facilities that keep pace with a growing population
• well-connected streets that encourage walking and cycling, and
• more open space and green streets.

Plans for the following locations in the Inner Melbourne Train and Tram Zone have now been finalised:

• Fitzroy and Collingwood, including Brunswick Street, Gertrude Street, Smith Street, and Victoria Parade
• Richmond, along Bridge Road and Victoria Street
• Alphington, along Heidelberg Road.

Plans for Macaulay, along the Upfield line in North Melbourne and Kensington, are being considered by the Minister for Planning.

You can read a summary of the plans for the Inner Melbourne Train and Tram Zone.

Page last updated: 26/07/26