The State Government has partnered with Evolve Housing to announce an affordable housing development to be built on Newcastle's former rail corridor.
30 rental units will be built, allowing low-income earners to experience inner-city living.
The project is expected to house a maximum of 80 people and will cater to families of different sizes.
There will also be three specialist disability accommodation dwellings.
Parliamentary Secretary for The Hunter Scot Macdonald says the development will allow people from all walks of life to experience inner-city living.
"It's important to have a diversity of workers, a diversity of housing- we must have affordable housing in the middle of the CBD," he says.
"We need more people living and working there across the spectrum if you like, and this goes some way towards that."
Macdonald says that it is part of the plan to rejuvenate the CBD.
"We committed when we closed the old corridor and announced the light-rail," he says.
"Roughly two-thirds of the old corridor is for community and social activation, and that's what we're getting with this affordable housing announcement."
It is hoped that construction will commence by the end of the year.
