The state government has cleared the way for the construction of about 20,000 new homes near six rail stations in Sydney's south-west.

Following a three-year consultation process, the Department of Planning and Environment this month finalised plans to rezone areas around train stations from Macquarie Fields to Macarthur on Sydney's T8 or South rail line.

Campbelltown train station. State government plans released this year propose high-rise on both sides of the rail line. Credit:Louise Kennerley

The most significant changes are set to occur around Macarthur and Campbelltown train stations. The department expects another 3600 dwellings to be built in the immediate vicinity of Campbelltown Station in the next 20 years, with more beyond that. The department is proposing clumps of high-density development to the north and south of Campbelltown Station, with no maximum building height.

Around Macarthur Station, the government is planning for 4650 new homes over the next 20 years. The plans are based around six storey residential-only apartment blocks, as well as larger mixed-used towers.