Mining billionaire Andrew Forrest has bought a parcel of coastal land at Binningup for residential development.
The Forrest family's property development company, Fiveight, confirmed the deal which includes 260 hectares of land and 2.2 kilometres of beach frontage.
The company said it would "reactivate" the coastal site, and a key priority was to re-open the nine-hole golf course.
Fiveight boss John Meredith said a series of community consultations with stakeholders and interested parties would "move the discussion forward".
"We know that demand for quality housing is on the rise, and will only become more vital, as the area grows and develops," Mr Meredith said.
"Although this project has a long horizon, we are committed to working closely with residents and community organisations to develop a sustainable, long-term plan for the site, one that will create a vibrant, socially connected local community that people will be proud to call home."
Development to double size of village
A purchase price was not disclosed, however Mr Meredith said "the size of the purchase was probably going to be dwarfed by the scale of the investment", which he estimated would double the size of the current town site.
"We would anticipate that the future of Binningup really does deliver on new opportunities," Mr Meredith said.
"The unfortunate thing is the promises of the past have never really been delivered on."
Once the best kept secret in WA
Shire of Harvey president Paul Gillett said the council was supportive of the proposed development despite the planning being in "the early stages""
It has plans for a 1,000-bed capacity workers' village in Binningup.
Albemarle is weeks away from first production of battery-grade lithium hydroxide at its Kemerton plant, just north of Bunbury.
Mr Gillett said he understood concerns the development could lead to price hikes for existing homes as evidenced by nearby tourist towns of Dunsborough and Margaret River to the south.
"Hopefully it won't spoil that parcel of land through Binningup, it is magnificent," Mr Gillett said.
"It was one of the best kept secrets in WA. Now that the secret is out, maybe a few more people can come down and appreciate what a wonderful place it is."
