The state government is moving to demolish old, over-water oyster farm buildings at Woolooware Bay and build new aquaculture facilities and possibly one or more cafes.
Up to eight tenants will occupy new buildings over the water and on adjacent land, which has been remediated following the discovery of contaminated soil.
The maritime arm of Transport for NSW (TfNSW) closed the site in 2017, with one of the site's last two oyster farmers ordered to leave, and the other restricted to water access.
Bob Hill, the operator of the remaining business, Endeavour Oysters, doubts the viability of the project.
Mr Hill said TfNSW had spent more than $20 million remediating the site next to Captain Cook Drive and was trying to recoup that money.
"They are hoping the big boys in the industry will come in, but I don't think there is the money about that used to be there," he said.
Mr Hill thinks any idea of having one or more cafes on site, as indicated in an expressions of interest document, would be unworkable with heavy equipment, such as forklifts, in use.
A Review of Environmental Factors said TfNSW and the Department of Primary Industries (DPI Fisheries) aimed to continue to support the aquaculture industry at Woolooware Bay.
"Oyster farming has operated from the site for several decades and the Georges River is the birthplace of oyster farming in Australia," the REF said.
"The NSW oyster aquaculture industry is the state's most valuable fishery and accounts for most of the state's aquaculture production.
The document said the aging structures were no longer fit-for-purpose and must be upgraded to meet modern operational and safety standards.
The document said the proposed aquaculture precinct included three new over-water buildings and potential for a further four land-based buildings, linked by walkways, pontoons and shoreside infrastructure.
This would accommodate up to eight tenants, providing a significant improvement to the capability of the aquaculture industry in southern Sydney.
"The works will be completed in stages to allow for continued operation of the aquaculture industry during construction.
The proposal would be constructed over a duration of approximately 12 months starting early 2023.
A development application (DA) for buildings on land which was remediated over a two-year period has been lodged with Sutherland Shire Council.
The DA said oyster farming in the shire has been occurring since the early 1870s.
"The rapid suburbanisation and growing population of Sutherland Shire in the 1970s and 1980s saw the degradation of water quality in the Georges River and Woolooware Bay, " the DA said.
"As a result, the quality of the oyster harvested in the Georges River and Woolooware Bay suffered and the local oyster industry went into decline.
"Improvements in urban water management have resulted in improved water quality within Woolooware Bay in recent years."
The DA said the 1700 hectares formerly farmed for oysters was currently about 70 per cent unutilised and limited to a single operator.