The future of Perth and Peel has been mapped out in plan called Perth and Peel@3.5 million that defines the future shape of Perth and Peel for the next 35 years.
The current population of Perth and Peel is 2 million, with 1.5 million people expected in 35 years.
800,000 new homes with be needed to accomodate the population increase.
The population increase will being enormous opportunities but will increase demand on our resources, social and physical infrastructure, services and natural environment, today and into the future.
The Minister for Planning, Culture and the Arts, John Day said the current outward sprawl of the city was unsustainable and accommodating a substantial population increase would require a shift in thinking.
"This continued outward growth is placing significant pressure on our resources, infrastructure, services and the natural environment," he said. "This means almost half the 800,000 new homes we will need in the future must be created through appropriate density and infill.
"These plans make better use of existing infrastructure by co-locating jobs and homes close to public transport and amenities. Greater density and mixed-use developments in activity centres will also ensure we create a more compact and consolidated Perth and Peel."
Mr Day said the plans would give people more choice in their housing options; to stay in the suburb they grew up in; to live and work in a preferred suburb and to live in the type of home most suitable for them.
"A house with a backyard will always be an option, however the Government is enabling more housing choices to suit the lifestyle and budget of all West Australians," he said.