In less than four decades the east-west link from the Eastern Freeway to M80 Ring Road, the north-east link completing the ring road, an outer ring road, the Melbourne metro rail project, new railway lines to Rowville, Doncaster and Melbourne and Avalon airports will all be built, according to a new planning blueprint.
Premier Denis Napthine said the 40-year vision called Plan Mel-bourne, would help Melbourne remain one of the most liveable cities in the world.
He said the 176-page plan was "the most significant document for the future of Melbourne and Victoria over the next 40-50 years".
"You don't have to have one before the other, you can do them both," he said.
The government said the plan would help schedule key infrastructure.
Asked if the planned completion of the ring road would take place before the proposed metro rail tunnel from Kensington to South Yarra, Dr Napthine said the government could "walk and chew gum at the same time".
The plan outlines a schedule of 2017–2025 for the work to have begun on the Melbourne metro rail project.
Dr Napthine said he expected work to have begun "in the back half of this decade".
The new Melbourne Planning Authority will be charged with implementing the plan.
Planning Minister Matthew Guy confirmed there may be some development areas identified by councils as residential growth zones where the planning approval system would be fast-tracked for multi-unit developments to encourage more affordable housing.
The system would mean councils could set rules about what height or density of development was allowed and then the planning application would be fast-tracked with no notifications to neighbours or right of appeal.
The new planning vision outlines five city sub-regions and expected population increases to 2050.
The biggest increases will be in the north and south-east of Melbourne, with growth estimated up to 700,000 new residents. The eastern suburbs are expecting the lowest growth, up to 350,000 extra residents.
The plan also identifies a permanent urban boundary for Melbourne and employment clusters in East Werribee, Sunshine, Parkville, La Trobe, Monash and Dandenong South.
Public comment will be taken on the document until December 6, with the final document to be adopted by Victoria on January 1, 2014.