$440 million development planned for Wyndham Harbour

One of last major undeveloped sites on Melbourne's Port Phillip Bay is to be transformed into an entertainment, commercial and residential village built around a new harbour, two beaches and a 1,000-berth marina.

The Victorian Government, Wyndham City Council and the owner of the Werribee South land around the proposed marina (associated with Melbourne's wealthy Liberman family) are planning to construct a hotel, retail and restaurant precinct, yacht club, apartments and detached housing.

A proposed ferry transit terminal will link the development to the central business district and possibly other marinas around Port Phillip Bay.

Wyndham Harbour is earmarked for a large slice of land and waterways near the mouth of the Werribee River. The site is about 30 kilometres south-west of the Melbourne CBD near the RAAF Williams Point Cook Base.

Construction is expected to start next year, about seven years after the council sold a four-hectare site at the bottom of Duncans Road for $1 million to the Liberman family's Jagen Pty Ltd, and Prudential Investments Pty Ltd.

Though the land was once zoned 'green wedge', industry sources say redevelopment of the area has been mooted since the late 1980s.