The council approved the building of the $12,500 bus shelter outside Maylands Hall on Eighth Avenue.
The decision comes after the council rejected a similar proposal in February 2014 because of low patronage at the stop.
The Public Transport Authority funds half the cost of city bus shelters that have more than 15 boardings a day.
Councillor Brent Fleeton said elderly patrons often missed the bus because they were sitting in shade, or sheltering in a nearby telephone booth.
Crs Sally Palmer and Chris Cornish said the structure was likely to attract more people to use the bus service, including elderly people.
“It’s next to the library, next to RISE; I think if you build it, people will come,” Cr Cornish said. But Cr Alan Radford said he did not support the proposal because it significantly cut into the City’s $40,000 bus shelter budget.
“It’s a third of the budget and only eight people use it a day,” Cr Radford said.
Cr Catherine Ehrhardt initially called for a report into the shelter to be presented to the mid-year budget review, but Mayor Barry McKenna said “The money’s there, we might as well do it now”.