This will support the delivery of over 60,000 dwellings in Blacktown, Camden, Cumberland, Liverpool, Parramatta and The Hills Shire council areas.
Property Council's Western Sydney Director David White said the fund would help Western Sydney grow.
"This important fund, which is mostly for local infrastructure projects, covers key roadworks, utility services, cycleways, public transport and public domain works, to support growing communities in Greater Western Sydney, as it continues to emerge as the development powerhouse in Greater Sydney," Mr White said.
"Government must now target the delivery of bigger regional infrastructure, or projects valued over $50 million, to further support the housing delivery in key growth precincts in Greater Western Sydney.
"This includes an interim sewerage strategy at Austral Leppington, a new regional road at Glenfield, and completion of Richmond Road and Marsden Park water and sewer works to support the North West Growth Centre.
"These will provide an additional 20,000 dwellings and help address the acute housing and rental crisis in Greater Western Sydney."
Mr White said a multi-pronged approach to funding for both regional and local infrastructure was critical to provide a sustained pipeline of homes for Greater Western Sydney.
"This approach will further alleviate the pain for those vulnerable residents who dread the monthly mortgage due date and rental notice."
