The state government is calling for developers to take on a block of land in Busselton to turn into affordable housing.
The initiative is part of the launch of the government's housing diversity pipeline in a bid to bring more housing choices to West Australians.
A total of 12 Government-owned landholdings will be released in the first tranche of the pipeline with only two being regional.
Under the new process, developers, builders and community housing providers will be invited to participate in a registration of interest process.
Housing minister John Carey said it would provide industry a chance to put forward their ideas on how the sites could be developed and what new housing opportunities could be explores.
"We know there is a need for a more diverse housing mix in Western Australia and I am confident we will see some really fantastic development ideas through this process," he said.
"These sites are in fantastic locations and close to public amenities like future train stations.
"We want to hear from developers, community housing groups and builders about what they can bring to the table."
The government will be open to innovative ideas including building to rent, ground leasing of the land, and will be requesting a variety of housing types.
After this stage, a more targeted expressions of interest process will follow to facilitate the actual approvals and support for the new development.
Planning minister Rita Saffioti said the program would provide a "long-term" pipeline of work and local jobs to sustain the housing construction industry.
Registrations of interest can be made online at www.wa.gov.au/housing-diversity-pipelineregistration-of-interest by Tuesday March 1, 2022.