Emergency Services Minister Joe Francis announced last week that the State Government had bought the site and said the station was being built in response to the growth of inner-city suburbs and the Perth CBD.
"In recent years, demands on the existing Perth fire station have increased significantly and more residential and commercial construction in the city means this trend will continue," he said.
Projects including the Perth City Link, Elizabeth Quay and more high-rise CBD buildings had placed greater demands on firefighters and the West Perth station would reduce pressure at the busy East Perth station.
Get in front of tomorrow's news for FREE
Journalism for the curious Australian across politics, business, culture and opinion.
READ NOWOn May 16, 2012, about 45 firefighters battled a fire at an abandoned warehouse at the site of the new fire station.
Nearby residents were evacuated after the fire created a plume of toxic black smoke and concerns were raised about possible asbestos roof fibres.
Under the Health Act, the City of Vincent was responsible to the site's clean-up.
A spokeswoman said a health notice sent to the site's former owner instructed them to demolish the warehouse and get a licensed asbestos contractor to remove and document the contamination.
She said the work was completed and the notice was revoked on June 14, 2012.
Department of Fire and Emergency Services asset director Mike Waters said independent consultants had held "extensive environmental testing that has given us absolute peace of mind".
The new station is expected to be completed in 2017.