THE western edge of the Kogarah town centre has been earmarked for urban renewal with Rockdale Council voting to nominate the site as a priority precinct.
The priority precinct program, run through the Department of Planning and Infrastructure, aims to deliver more homes in places close to transport and infrastructure.
Rockdale has previously been successful with its nomination of Arncliffe and Banksia.
The government will provide $10 million in infrastructure to support renewal in those two areas, which are about one kilometre wide, along the Princes Highway corridor.
Under those plans, new shops and restaurants with high-rise apartments above could replace old factories and homes.
It's something the council wants to replicate in Kogarah.
Rockdale mayor Shane O'Brien said the site west of the railway line was chosen for its location close to Kogarah train station.
"There is a demand for higher-density so it makes sense to increase the population where there are those transport links," he said.
"You need to encourage development in the right area and I think it's important we work with the state government on where the planning priorities are.
"It makes more sense than developing, [then] worrying about the transport infrastructure."