The site of one of New South Wales’ oldest coal-fired power stations is poised for a dramatic transformation, with a new rezoning proposal outlining plans for up to 3,500 jobs and around 1,200 new homes at the former Wallerawang Power Station.
The rezoning proposal, prepared by site owner Greenspot, is intended to support the Lithgow region’s economic evolution as the area continues its shift away from coal-fired power generation.
Covering approximately 620 hectares, more than double the size of the Sydney CBD, the plan would see the site adjacent to Lake Wallace redeveloped into an industrial hub paired with a vibrant lakeside community.
According to the proposal, now on public exhibition, key features include a new employment precinct with industrial and commercial land, building heights ranging from two to five storeys in designated areas, and more than 100 hectares set aside for protected environmental conservation and open space.
A tourism and recreation precinct is also planned adjoining Lake Wallace, linked to new walking and cycling trails through the surrounding bushland.
The proposal follows extensive work by Greenspot to decommission and remediate the former power station site between 2021 and 2023.
It was developed in close collaboration with Lithgow City Council and NSW government agencies, and was declared a State Assessed Rezoning Proposal due to its strategic significance, allowing for a coordinated assessment process.
Minister for Planning and Public Spaces Paul Scully said the site had played a significant role in the region’s history and was now being positioned for a new chapter.
“The Wallerawang Power Station helped power New South Wales and the Lithgow community from 1957 to 2014,” said Scully.
Minister for Natural Resources Courtney Houssos said the government remained committed to ensuring former mining and power generation sites were rehabilitated and repurposed to benefit local communities, noting that sites like Wallerawang had supported jobs for generations and that the government intended to keep it that way.
Mayor of Lithgow City Council Cassandra Coleman said the proposal reflected the town’s ongoing significance to the state, noting that the transformation would drive the next stage of new industry for the community and that the associated development and business opportunities reinforced Lithgow’s standing as a critical regional hub.
The rezoning proposal builds on the recent release of masterplans and rezoning proposals for the Mt Arthur Coal Mine and Macquarie Coal Complex in the Hunter region, which are together expected to unlock more than 7,000 jobs as part of broader post mining land transformation efforts.
The NSW government said it continues to work with industry and local councils across the state to plan for a secure jobs future as regions transition away from coal.
The rezoning proposal for the Wallerawang site is on public exhibition until 5pm on Tuesday, 25 August 2026.
