Apartments will be allowed to be built throughout inner city Liverpool for the first time under a plan to draw more businesses and residents to south-west Sydney's growing metropolitan hub.

Liverpool Council has rezoned 25 hectares of land in its central business district to enable mixed-use developments that could include cafes, bars, restaurants, shops, offices and residential buildings.

Sky's the limit: an artist's impression of the types of mixed-use development planned for the heart of Liverpool. Credit:Liverpool City Council

Mayor Wendy Waller hoped the rezoning would eventually double the number of residents living in the inner city, and would mean more people could live close to work, businesses and schools.

"We want to create a vibrant city centre with an 18-hour economy," she said.