Rezoning Push Could Remake Reservoir's Industrial Spine Into 4,000 New Homes

The Victorian Planning Authority has lodged a formal rezoning proposal for approximately 47 hectares along High Street, Reservoir — a corridor of ageing light industrial sheds, car yards and single-storey retail that runs between Edwardes Street and Plenty Road. If approved, the land would shift from its current Industrial 1 Zone classification to a mixed-use residential precinct capable of accommodating an estimated 3,800 to 4,200 dwellings, according to planning documents tabled with Darebin City Council last month.

The timing is deliberate. The Albanese government's housing targets require Victoria to deliver 800,000 new homes by 2034, and Melbourne's inner-northern suburbs — well-connected by the Mernda and South Morang rail lines, both of which pass through Reservoir station — are under sustained pressure to absorb density that outer corridors cannot absorb quickly enough. Land prices in the Frankston growth corridor have climbed steadily, and Bayside medians now sit well above $1.6 million, effectively locking moderate-income buyers out of established zones. That pushes attention northward.

What the Proposal Actually Involves

The draft framework, prepared by the Victorian Planning Authority in collaboration with Darebin Council, envisions the High Street corridor redeveloped in three stages over 15 years. Stage one — covering the 11 hectares between Edwardes Street and Spring Street, Reservoir — would be fast-tracked for rezoning under the reformed Activity Centre Zone introduced to the Victoria Planning Provisions in March 2025. Stage two and three would move progressively toward Plenty Road, with mandatory affordable housing contributions of 6 per cent applying to all residential floor area above eight storeys.

The precinct sits roughly 11 kilometres north of the CBD, within walking distance of Reservoir station, which recorded 1.9 million passenger trips in 2024-25 according to Public Transport Victoria data. Three schools — Reservoir High School, Reservoir Primary and St Joseph's — sit within 600 metres of the proposed boundary, a fact that has already triggered a parallel community consultation process run by the Department of Education.

Current Victorian median house prices sit at approximately $920,000, and units at $620,000. A newly developed two-bedroom apartment in comparable inner-north precincts such as Preston and Coburg North has been transacting between $680,000 and $750,000 through the first half of 2026. Developers briefed on the Reservoir proposal have indicated that at those densities and land costs, sub-$600,000 product for two-bedroom configurations is achievable — a figure that would represent genuine affordability relative to the broader market.

Community and Commercial Pushback Likely

Not everyone within Darebin sees the proposal as straightforward progress. Local business associations representing the roughly 340 operators currently zoned along the corridor have flagged concerns about the displacement of trades and light manufacturing that underpin the suburb's working-class employment base. The Darebin Business Hub, which operates from offices on Gilbert Road, has been formally engaged by council as a stakeholder voice in the process. Several owner-occupiers of industrial buildings in the first-stage area are understood to have sought valuations in recent weeks, with the rezoning speculation alone lifting expectations for land prices along the strip.

The Victorian Planning Authority's public exhibition period for the proposal opens July 14 and runs for eight weeks, closing September 8. Any party — resident, business or neighbouring council — can lodge a formal submission. Following exhibition, the authority will compile a panel report before recommending a final decision to the Minister for Planning, expected no earlier than mid-2027.

For buyers and investors, the practical read is simple: Reservoir land within or adjacent to the proposed boundary has already started attracting developer inquiries, and comparable rezonings in Brunswick East and Coburg in the early 2010s saw land values lift 40 to 60 per cent in the 18 months following approval. Anyone with an existing property interest along the High Street corridor should obtain independent planning advice before the exhibition period closes, and should lodge a submission if their property sits within 200 metres of the proposed precinct boundary — that proximity typically qualifies as an affected party under the Planning and Environment Act 1987.