The precinct, now on the edge of new Kingston Foreshore redevelopment, was first settled in 1925 and the now-prime land looks set to be razed under an urban renewal program.

ACT Planning Minister Mick Gentleman told The Canberra Times in 2015 that the plan for the East Lake redevelopment, including The Causeway, was in its final stages.

But now the ACT government says it is the "early planning phase" for future development in the area. Residents have had no update about redevelopment plans for at least five years.

Mrs Sims said the residents had been left in the dark by the lack of communication. "They promised us that with any redevelopment that they'd keep in contact with us. And they haven't," she said this week.

An ACT government spokesman said the area provided a significant urban renewal opportunity to support the city's growing population.

The 2019-20 territory budget allocated $608,000 over two years for an East Lake urban renewal scoping study.

The spokesman said public housing would continue to be provided in East Lake.

"The ACT government recognises that many existing residents of The Causeway have a strong connection to the area, in some cases going back generations," he said.

"Housing ACT will work closely with existing residents to ensure that those who wish to stay will be able to do so."

Mrs Sims said residents in The Causeway had been told if they looked after their houses, they would be given the option to move into a new property once the area was redeveloped.

She was eager to stay in the area.

"I wouldn't go upstairs, I'd be in the bottom. And if I could get a little garden out the front and out the back, I'd take it," the 74 year old, who raised five children in her house, said.

Mrs Sims said government-owned houses were not being left empty and many recently vacated properties were tenanted by refugee families.

The spokesman said any urban renewal projects at The Causeway would need to managed according to environmental and other regulations.

"As in all other urban renewal projects, the government would also actively engage with the community and stakeholders using a range of information and communications prior to any future urban renewal proceeding," he said.

Then-housing minister John Hargreaves told residents in February 2009 they would be able to stay in the redeveloped suburb.

If residents did not want to move to a unit, alternative accommodation in the inner south would be found, he said.

Mr Hargreaves pledged to invest money from the sale of The Causeway in more inner-south public housing.

The Causeway was first home to workers on some of the ACT's earliest building projects, including the provisional parliament house and the Sydney and Melbourne buildings.

It was redeveloped in the 1970s when weatherboard homes were torn down and replaced with brick houses.