Kiama Municipal Council welcomes the NSW Government's announcement of a finalised proposal for the Shoalhaven Street Precinct.
The Department of Planning, Housing and Infrastructure has approved the rezoning of the Kiama Depot site from industrial to residential.
Relevant planning controls in the Kiama Local Environmental Plan 2011 will be amended under the final proposal to enable delivery and align with the NSW Government's Low- and Mid-Rise Housing Policy.
Kiama Mayor Cameron McDonald said the delivery of these new homes is an integral part of Kiama Council's Housing Strategy.
"This is a very exciting opportunity for Kiama," he said.
"Council will continue engaging with residents and all the relevant stakeholders to ensure this development fits in with our township. Consultation has already helped shape the approach to the site.
"There are still several steps to be navigated before shovels are in the ground. It is essential that any development on the site is something we can be proud of.
"Affordable housing is also an important issue throughout Australia, including as a vehicle for providing essential workers to be close to employment centres, and it will be significant for Kiama to be able to deliver this model of housing for our local community."
A short walk from the town centre and railway station, the development was identified as a State Significant Project by the NSW Government in July 2025.
A 28-day public exhibition period was held for the proposal late last year with 276 submissions helping to inform the finalisation of the proposal, which includes:
• a reduced height of building from exhibited range of 22m-30m (6-8 storeys) to a maximum building height of 22m (six storeys),
• a reduction in the maximum number of dwellings from 450 to 378,
• clearer guidance on design solutions that mitigate impacts to neighbouring properties, including improved privacy and reduced overshadowing through setbacks,
• clarification that noise and pollution impact on residential use will not exceed those of industrial uses which are permitted currently on the site,
• public open space will be provided as a part of the development application.
The rezoning also includes de-listing the heritage-listed former gasworks and the removal of the site from the Smith Farm Heritage Conservation Area.
Council will be responsible for preparing a site-specific Development Control Plan to ensure that future development on the two-hectare area, which encompasses the Works Depot and the adjoining Big River site, respects the character of Kiama.
Future development applications will provide detailed consideration to amenity, traffic, utilities and infrastructure.
Community engagement will continue throughout the implementation phase.
