The Rockingham Strategic Regional Centre Renewal project involves $16.4 million from the State Government and a federal funding commitment of $3.75 million.
Regional Development and Lands Minister Terry Redman said works would include the construction of a 30-unit medium density residential building in the inner city.
�The new building will be constructed using five-star principles and sustainable building materials that will show an alternate way of living for the area�s growing population,� Mr Redman said.
�Construction is expected to be completed by late 2016.�
WA Senator Michaelia Cash was among those to turn the first sod, and said the project was part of a broader plan to convert Rockingham from a low density, car-oriented city into a transit friendly city.
�The Access Housing project will provide a mix of owner-occupied and affordable private rentals in the inner city area,� Senator Cash said.
�The project will also include work on the first stage of a rapid bus transit system to move large numbers of passengers quickly and comfortably around the city.�