The construction of large buildings around a new metro railway station at Waterloo in Sydney's inner south will be fast tracked after planning for them was separated from the massive redevelopment of a nearby public housing estate.

The split means that the so-called metro quarter at Waterloo, above an underground railway station in the city's $20 billion-plus metro project, will be completed as early as 2022, two years before the first trains are due to begin running on the second stage of the new rail line.

Public housing apartment blocks at Waterloo in Sydney's inner south. Credit:Robert Pearce

But the decision has sparked an outcry from community groups who argue that the acceleration of planning for the metro quarter will not give public housing tenants in the adjoining Waterloo estate enough time to be consulted on the major changes to their suburb.

Community group REDWatch said there was a rush to push the plans for the metro station development “through at any cost, with absolutely no regard for the vulnerable community” living nearby in the Waterloo estate.