Work on the city's largest master-planned community started this week when the first sod was turned at Embark Busselton.
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Being developed by Yolk Property Group, Embark will include new housing choices, retirement living options, parks and playgrounds, as well as a town centre.
City of Busselton Mayor Grant Henley said the new development would play an "important role" as the region continued to grow.
"Embark will help meet escalating demand for new housing as our population heads towards 50,000 people by 2026," he said.
"Investment in infrastructure, attractions and our beloved foreshore have reaffirmed Busselton's popularity as a thriving destination for visitors and thousands of new locals alike."
According to the City of Busselton's Economic Development Strategy 2016-2026, the local government area is one of the fastest-growing populations in the southern half of WA with a population just over 41,000 people.
Bounded by Vasse Highway, Bussell Highway and Outer Bussell Highway, the 136ha development site will create 956 new housing lots.
The average lot size will be 650sqm.
Yolk Property Group chief executive Tao Bourton said the company acquired the land in 2022.
"We're looking forward to bringing to Busselton our fresh-thinking approach to community, housing design and liveable neighbourhoods," he said.
"As part of our commitment to innovation, sustainability and community outcomes in our land estates, the focus at Embark is on bigger blocks, more trees and natural vegetation, and a host of features designed with lifestyle and community connection in mind."
Expressions of interest for the first lots are now open.
For more information, visit www.embarkbusselton.com.au.
