Work on Lakelands Station began on Sunday, which when complete will take the pressure off the nearby Mandurah and Warnbro stations.
The site has become a hive of activity as contractor ADCO Constructions progresses early works on the project, including modifications to existing overhead line equipment and rail corridor earthworks.
When complete, the project will include a pedestrian overpass providing access to platforms on either side of the rail line, toilets, bicycle parking facilities, a bus interchange, and approximately 400 parking bays.
The new station is seven kilometres north of Mandurah Station off Lake Valley Drive and will cater for the area's growing suburbs including Lakelands, Madora Bay and Meadow Springs, providing a 50-minute journey to the Perth central business district.
The new station is forecast to initially generate about 2,300 daily boardings, increasing to about 3,500 by 2031.
The project is jointly funded by the federal - 80 per cent - and state governments.
Canning MP Andrew Hastie said the station is a "long-held dream" for many people in the north Mandurah community.
"Some residents have waited a decade for it to arrive," Mr Hastie said. "The works happening prove what's possible when locals work together and refuse to give up."
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"The strategy of a station integrated into the community like this will make it easier for pedestrians and cyclists to access, increasing social and economic mobility. Lakelands will also reduce pressure on Mandurah station and locals roads, and help get people home sooner."
Premier Mark McGowan said the southern suburbs were booming, with the Mandurah Line the busiest on the rail network.
WA Transport Minister Rita Saffioti said the government was working to implement a two-zone fare cap.