Construction of the $1 billion Morley to Ellenbrook will begin next year with an upgrade of Bayswater Station.
The $146 million project also signals the end of the notorious Bayswater overpass, a cause of sheepish embarrassment for dozens of Perth truck drivers in recent years.
Three main train lines will connect to the Bayswater station - the existing Midland service and new lines to Ellenbrook and Perth Airport.
Premier Mark McGowan said a bigger station, better road network and more public space was based on public feedback on the station design.
“Along with creating a junction for our new Metronet lines, it will pump vibrancy and activity into the Bayswater town centre to support more jobs and local businesses," he said.
Truck drivers will be spared a showdown with the notorious Bayswater bridge, with the 3.8m overpass claiming 15 trucks in the past year, with three incidents this month alone.
"Part of this project also involves raising the Bayswater bridge, which has trapped at least 20 trucks since I have been Premier,” Mr McGowan said
Part of the project includes lowering a section of Whatley Crescent between King William and Hamilton streets and a second underpass connecting to Beechboro Road under the new rail bridge.
The wider precinct will feature better connections for pedestrians and improved traffic management and street designs for motorists, while bus services will be integrated with local traffic and better connected to trains.
Transport minister Rita Saffioti said the project was driven by locals and hoped it would transform Bayswater.
"We want to build something that balances community needs, transport outcomes, heritage and new commercial opportunities," she said on Saturday.
"It will be Bayswater Station’s biggest overhaul in more than a century ... and a vital first step for the Morley-Ellenbrook Line, which will connect the north-east corridor to Perth’s rail network for the first time."
Ms Saffioti said to expect further announcements on the Forrestfield Airport Link before Christmas.
Tunnelling for the new $1.8 billion project stopped in September after a sinkhole appeared, with fears projected costs could blow out.
A tender for construction works at Bayswater station will go out in early 2019, with work to commence late 2019.