More than 200 new homes will be built on land that was previously identified as flood-prone.
The NSW Government announced the remainder of stage three of the West Dapto urban release area would be rezoned.
The rezoning has amended planning controls in the Cleveland Road precinct to enable the delivery of 225 new homes.
It is understood the rezoning is the result of more detailed flood modelling, which suggests those particular sites are not at significant risk of flooding.
A NSW Government spokesperson said West Dapto was considered a strategically significant location for development as one of the state’s fastest growing residential areas outside of Sydney.
Stages one and two were rezoned for new homes in 2010 and are under development.
Much of the stage three precinct was rezoned in March, for up to 2275 new homes.
The rezoning was split into two parts to allow the City of Wollongong Council and the Department of Planning, Housing and Infrastructure to address flooding issues.
“Those issues have been resolved through collaboration between the department and council on an updated flood impact and risk assessment report,” the NSW Government spokesperson said.
“The preparation of a neighbourhood plan for the precinct and the development assessment process will ensure that flooding is further assessed prior to development occurring.”
The rezoning follows a recent investment of $20 million for the construction of the Cleveland Road upgrade.
This upgrade connects the West Dapto urban release area to the Princes Highway and the M1 Motorway.
The NSW Government has identified Dapto as a location in the government’s Transport Oriented Development policy and the affordable housing bonus scheme.
Minister for Planning and Public Spaces and Member for Wollongong Paul Scully said he hoped the release would go some way to alleviating the region’s housing crisis.
“The Minns Labor Government is focused on delivering for Wollongong and the Illawarra,” he said.
“It is hugely exciting to know this rezoning will help get more people into homes sooner and continue the area’s growth for the future.
“Our investments in the region will improve people’s lives with a focus on building better communities with more homes and jobs.”
The price for a block of residential land in West Dapto suburbs begins at about $450,000.
The cheapest home available for sale in the West Dapto suburbs is listed for about $750,000.
More information on the rezoning can be found on the NSW Government’s planning portal.