Thousands more people will call Sydney's northern beaches home over the next few years, after the Baird government unveiled plans to transform a large slice of undeveloped land into a new suburb with more than 3000 homes.

For more than 80 years, Ingleside, a short drive from Mona Vale, has been eyed off by successive NSW governments as Sydney's next suburban haven.

On Friday, NSW Planning Minister Rob Stokes announced the suburb would finally proceed as he unveiled draft plans that would result in up to 3400 houses and terraces being built on 15 hectares of open space, and a further 200 hectares of preserved bushland.

"This is a land release that has been spoken about since the 1920s," Mr Stokes said. "This is a very long time in the making."