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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.
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, 84 level crossings removed, and the Metro Tunnel opening in 2025.
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 we're working collaboratively with the City of Melbourne and City of Yarra 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. It will involve detailed identification and mapping with the aim of upzoning strategic sites, and fast-tracking specific site developments.
As part of the Train and Tram Zone Activity Centres Program, we have created purpose-built new planning controls that allow for more homes to be built close to public transport, and streamline the approval of homes that meet our planning requirements.
The City of Melbourne and City of Yarra have undertaken significant work to allow for more people to live in these great places. Our planning for the Inner Melbourne Train and Tram Zone will build on the council’s work to apply these purpose-built planning controls to appropriate locations.
Current projects
The first two locations we are planning for in the Inner Melbourne Train and Tram Zone are:
- The Macaulay Urban Renewal Area located along the Upfield line in North Melbourne and Kensington (City of Melbourne).
- Areas along tram corridors in Fitzroy and Collingwood, including Brunswick Street, Gertrude Street, Smith Street, and Victoria Parade (City of Yarra).
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 purpose-built new planning controls. This will allow us to fast-track the delivery of these plans and apply our new streamlined approval processes to these places.
Both projects are being considered by independent committees, who will hold public hearings in early 2026 before providing advice to the Minister for Planning.
Find out more about the councils’ plans for these two locations:
Find out more about the independent committees here:
Page last updated: 19/01/26