A former dead end between the Circular Quay light rail stop and Customs House has been transformed into a beautifully paved space where people can meet, sit and eat.
The City of Sydney's $8m upgrade of Loftus Street has created an extra 1,200 square metres of wider, accessible footpaths and a public plaza, with trees planted and bench seats installed in the area.
Lord Mayor of Sydney, Clover Moore AO said the additional room is already being used by people spilling out from neighbouring buildings for coffee, lunch and events.
"Circular Quay is undergoing a major transformation with numerous large-scale developments under way and a growing number of nearby transport hubs. We're doing our bit with smart management and upgrades to the surrounding streets, laneways and public areas," the Lord Mayor said.
"This pocket of Loftus Street is not only a place people walk through while they work, travel or attend an event but also a place where outdoor dining, festivals and markets can take place.
"George Street is a shining example of how much better the city functions and feels with less cars on the road, more room for pedestrians and better public transport. We are committed to putting people at the centre of our designs for the city and transforming Sydney into a greener, safer, calmer city, where communities can come together."
Early morning access along part of Loftus Street for services and business deliveries has been maintained.
Additional public plazas are currently being created in Margaret Street, Bond Street, Jamison Street and Dalley Street off George Street.
Improving public space is one of the 10 transformative project ideas in the City of Sydney's long-term strategic plan.