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The State Government has revealed its final plans for the Northbridge Link.
The government will sink the rail line and bus station, and redevelop the 13.5 hectare site, to include a town square 25 per cent bigger than Melbourne's Federation Square.
It will match the Federal Government's contribution of nearly $250 million towards the project.
The Planning Minister John Day says the development will make the area much more vibrant.
"It's going to completely revitalise Perth, provide a lot more activity, a lot more amenity and a lot more opportunities for residents of Perth and Western Australia and visitors to Western Australia for entertainment activities, for restaurants, cafes and a whole range of other activities," he said.
The project will also include terraced gardens, dedicated cycle paths and a landmark building.
The Premier Colin Barnett says the town square will be the key element in connecting Perth and Northbridge for the first time in 100 years.
The project will eventually create more than 1650 dwellings for more than 3000 people and provide office space for more than 13,000 workers.
Forward works to sink the rail line will begin early next year.
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