Suburban streets will be protected from high density development and a permanent growth boundary will be created around Melbourne to stop sprawl under a new planning blueprint for Victoria.
With Victoria's population tipped to hit 8.4 million by 2050, regional towns will become population and employment hubs, while urban renewal projects will drive jobs in Melbourne, the blueprint says.
At least half of Melbourne's residential zoned land will be protected from high-rise apartment development, with density to be focused in certain areas, Planning Minister Matthew Guy said on Wednesday.
One million additional homes will be needed in Melbourne by 2050 when the population is expected to reach 6.5 million.
The blueprint also talks of creating a city of 20-minute neighbourhoods where shops, schools, parks, jobs and community services are within 20 minutes of people's homes.
Several key infrastructure projects also form part of the plan, including East West Link, the Melbourne Metro Rail project and the north east link, which will connect the Metropolitan Ring Road and Eastlink.
A third airport in Melbourne's southeast, between Koo Wee Rup and Lang Lang, is also being investigated.
Premier Denis Napthine said the strategy, known as Plan Melbourne, would focus on economic, social, environmental and character factors for Melbourne.
But he said the focus would not just be on Melbourne, but also regional Victoria.
"This is about producing a state of cities, not just a city state," he said.
The plan has received the backing of several key industry groups, but the state opposition says the plan will change Melbourne, bringing gridlock and congestion.
"More high-rises, more people, more cars, but no public transport and no infrastructure," deputy opposition leader James Merlino said.
He said the appeal rights of neighbours objecting to high-rise developments would be removed under the plan.
Municipal Association of Victoria president Bill McArthur said a permanent growth boundary sent a strong message to the market and encouraged a greater share of future growth and development in regional cities and towns.
The RACV called for bipartisan support for the plan.
"This strategy offers a chance to end the chronic under-investment in transport projects and services and RACV calls on both sides of politics to agree to the key proposals outlined in the report," RACV acting general manager public policy Thanuja Gunatillake said.
The Victorian Council of Social Service welcomed the plan, but said it needed to be appropriately funded.
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