The state government is showing "a real interest" in the Transform Mandurah plan and diversifying the local economy, says Mandurah mayor Rhys Williams.
City of Mandurah staff met with the Premier last week to pitch the project, which could revitalise the economy and create job growth.
Mr Williams said Premier Mark McGowan had a positive response to the City's long-term vision.
"We are really grateful to the Premier for listening to our plans on Transform Mandurah and he showed a real interest in what we are hoping to deliver," he said.
"He is interested in working alongside us to look at ways his government can help us diversify the Mandurah economy and create new jobs here, and position Mandurah as the Perth and Peel region's southern city."
Read more on the Transform Mandurah plan:
The Transform Mandurah plan includes a waterfront project to revamp the eastern and western foreshores and the Smart Street Mall, the relocation of a government agency and creation of a new civic square, a tourism precinct, and the activation of Yalgorup National Park.
WA Premier Mark McGowan said he looked forward to further discussions on the Transform Mandurah plan.
"I thank the City of Mandurah, in particular the mayor, for hosting me for a productive meeting," he said.
"The state government is always looking at ways to diversify the local economy and create jobs, as we continue on the path to recovery from the economic shock caused by COVID-19.
"It's early days, but I look forward to continued discussion with the City on its future plans."
Peel Development Commission chair Paddi Creevey said the Transform Mandurah plan would create jobs in several new industries.
"As the population in Peel continues on its rapid growth trajectory, it's critical we establish and pursue long-term plans that address the need for industry and job growth to sustain the growing population," she said.
Read more on the Transform Mandurah plan:
"The region's long-term visionary projects, Transform Peel and Transform Mandurah will create more jobs by supporting the growth of new industries like food manufacturing, research and development, mining, knowledge economy industries, and manufacturing.
"Transform Mandurah is a crucial piece in attracting higher-skill and higher-paying jobs in public administration, vocational and tertiary education, professional and technical services, and creative and cultural sectors."