A national indigenous arts centre, landscaped island and a cable car to Kings Park form part of a huge redevelopment to connect the CBD to the waterfront.

The government’s waterfront redevelopment plans were unveiled over the weekend, covering nearly 10ha between Barrack and William streets. The masterplan was created by Melbourne practice Ashton Raggatt McDougall.

“This plan closes the physical and psychological gap between the city and the river,” WA minister for planning, John Day, said.

The centrepiece will be a 2.8ha inlet that will bring the river back to near its original shoreline.

This will be surrounded by landscaped terraces, boardwalks and promenades, and fringed by shops, cafes, restaurants, bars and other activities.

“The Swan River - our greatest natural asset - is effectively cut-off from the city by Riverside Drive and by an expanse of lawn,” premier Colin Barnett said.

“Other major Australian cities have done far more with much less. This will assist Perth to mature as a vibrant, sophisticated capital city, providing an attraction for locals and tourists.”

By removing a section of Riverside Drive, the development encourages the use of public transport, taking advantage of the nearby Esplanade train station, Busport and commuter ferry services. Some changes to existing roads will be made to create more pedestrian-friendly routes.

“The development is designed for pedestrians and cyclists - not cars. It will be an attractive destination for families, young people, city workers, national and international tourists and seniors to gather and enjoy,” Barrett said.

Together with The Link, major works to the Cultural Precinct and other CBD projects, the city’s axis could be redefined through the strengthening of the Barrack and William streets links.

At the heart of the new inlet will be an island, a landscaped family-focused parkland space with child-friendly beaches.

Land at the foot of William Street has been preserved for a significant public building, which be a national centre for indigenous art and culture.

Event spaces will be dotted throughout the Waterfront, including a public square next to the Esplanade train station, the promenade, the island and a new road which can be closed to accommodate events. Larger events will be held at the Supreme Court Gardens, which will be improved under the plan.

The state government and Perth City Council will be seeking private sector involvement for the project.

The project involves significant work on road realignment, drainage and dredging but preliminary works will begin as soon as possible, with major construction commencing in 2012.