According to state government plans, buildings up to 28 stories would be built on 10 hectares of railway land close to Redfern station in central Sydney for a residential, entertainment, and technological hub.

The Redfern-North Eveleigh precinct's draught master plan is centred on a neighbourhood called the Paint Shop, which was given that name in honour of the 135-year-old brick workshop where the state's passenger trains were repaired until 1988.

A number of new public squares will be included in the precinct, including one that faces Wilson Street, and the old Paint Shop building may be converted into a commercial space or used for other purposes.

If authorised, up to 450 new flats might be built in the region, with the precise designs for the buildings' three to 28-story heights still to be decided. The Carriageworks art gallery at the Eveleigh rail yards is across the street from The Paint Shop.

The 10-hectare plot of land has been off-limits to the public for more than a century, according to Cities, Infrastructure and Active Transport Minister Rob Stokes, who also referred to the Paint Shop building as a "incredible canvas" for reimagining Redfern-North Eveleigh.

“We’re transforming the old rail yards by restoring and protecting their heritage value, building new homes and offices while creating more than 14,000 square metres of public space, including a new town square and public parkland,” he said.

According to the proposed plans, 15% of the flats in the region would be classified as inexpensive or social housing, while another 15% are designated for so-called diversified housing, which includes student housing and build-to-rent apartments.

Lord Mayor of Sydney Clover Moore said the government's master plan needed to fulfil the community's needs as well as the promise of the innovation precinct.

“The master plan should maintain the strong, special heritage character of the area and connection with First Nations communities,” she said.

Following a briefing on the ideas in the upcoming weeks, the City of Sydney council will evaluate the suggestion.

The Paint Shop neighbourhood will be redeveloped as part of longer-term plans for a sizable section of public property that stretches from Central Station to Redfern and Eveleigh.

According to Stokes, the Paint Shop's design would honour Redfern's rich Indigenous heritage and industrial past while providing dedicated areas for new companies and enhancing active transportation connections between Redfern Station, North Eveleigh, and the neighbourhood bike network.

The Transport Asset Holding Entity (TAHE), a contentious rail company that manages state rail assets valued at billions of dollars, now owns the land.

According to previously released confidential documents, TAHE's strategic priorities for the next three years include expediting work on a $11.6 billion development of 24 hectares of public land near Central Station and the Paint Shop sub-precinct.

In addition to more than 40,000 square metres of stores, restaurants, cafes, and bars, plans for the area around Central Station call for 100,000 square metres of hotels, apartments, or student housing.

The Paint Shop area's draught master plan will be on display to the public till August 25.