Adelaide's southern coastline is set to become home to a new suburb named South Beach with the state government approving the rezoning that unlocks the former Port Stanvac oil refinery site for redevelopment.

South Beach will feature 3,600 new homes, more than 60 hectares of employment land supporting almost 1,700 jobs and a mixed-use town centre with community facilities and services, to be delivered by leading Australian developer MAB.

It will also feature a 40-hectare coastal reserve, which, for the first time in generations, opens 1.7 kilometres of beach to the public.

The 230-hectare site will also deliver more than 31 per cent open space and will complete a critical missing link in the 70-kilometre coastal trail network running from North Haven to Sellicks Beach.

Up to 15 per cent of the 3,600 homes will be affordable housing, with a mix of detached houses, townhouses and apartments accommodating almost 8,000 new residents.

Port Stanvac has sat dormant since ExxonMobil ceased refinery operations in 2003 and is one of the last remaining metropolitan coastal infill opportunities in Greater Adelaide.

The Port Stanvac Mixed Use Code Amendment rezones most of the site from Strategic Employment to a combination of Master Planned Neighbourhood, Conservation and Urban Neighbourhood zones.

It is informed by a master plan, which also underpins a Concept Plan setting the framework for building heights, activity centre locations, transport connections, open space, stormwater management and traffic management measures.

Due to its historic industrial use, the site is known to be contaminated and remediation will be required as part of any redevelopment. That work will be overseen by independent qualified environmental consultants.

South Beach will be one of Adelaide's best-connected new communities, with direct access to the Lonsdale Railway Station and the Southern Expressway.

The development also includes upgrades to state and local road intersections and a new rail overpass connecting Sheriffs Road to South Beach.

Once complete, the development is expected to grow the Onkaparinga economy by $509 million a year.

The scale of the development and its distinct coastal character, compared with the historically industrial suburb of Lonsdale, supports the creation of an entirely new suburb, with consultation now underway.

MAB will now work with the State Government and the City of Onkaparinga to progress remediation and implementation of the Code Amendment, with construction anticipated to commence in 2028 and the first residents to arrive in 2029.

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