A western Sydney community group has lashed back at the NSW Government's North Parramatta "vandal" apartment plans as the Premier announced $310 million to revamp the historic riverfront site.

The site contains early colonial buildings, the Parramatta Gaol, the Female Factory and an orphan school.

Premier Gladys Berejiklian made the funding announcement on Sunday morning saying it would rejuvenate the 30-hectare site with much of it closed to public access because it had fallen into disrepair.

Recently, archaeologists uncovered artefacts from the area that showed evidence of coexistence between Aboriginal people and European settlers.

"There's also been enormous archaeological finds on this site, too many buildings are wasting away but we are rehabilitating them for public use at the moment the public are discouraged from coming here because it's dangerous, it's not accessible. That will change," the Premier said.

'Gift to future generations'

A significant portion of the funds will go towards relocating the Cumberland Hospital East Campus. ( Supplied: NSW Government )

The Government has allocated $310 million dollars to revamp the North Parramatta precinct's historical buildings over seven to 10 years, open up Parramatta River foreshore and build community parks and gardens.

"Parramatta has such a proud history of colonial and Indigenous history and it's wonderful that history is being rejuvenated," Ms Berejiklian said.

NSW Planning Minister Anthony Roberts described the funding as a "gift to future generations" of Parramatta residents and local MP, Geoff Lee, also backed up the Premier's funding announcement.

"We are going to create the largest heritage precinct in Australia — allowing us to restore, adapt and reuse and open up this whole precinct so Parramatta will be know for its long standing heritage — telling the story of how the nation started," he said.

A significant portion of the funds would go into relocating Cumberland Hospital East Campus, according to agency responsible for delivering the project — UrbanGrowth NSW.

One third of the site will be allocated for public use and community consultation will continue.

'Parramatta's soul' at risk

An artist's impression of the redeveloped North Parramatta site. ( Supplied: UrbanGrowth NSW )

The North Parramatta residents action group is not sold on the Government's plan to allow construction of 2,700 apartments at the site as part of their urban transformation and say they have been light on details about the residential development.

"For the past two years they've only been focusing on the heritage core and won't discuss the objections with the community to the … residential units that they want to build and ruin this site with," group president Suzette Meade said.

Ms Meade said that the site has UNESCO World Heritage List potential and the apartments would get in the way of this important classification.

"I think if this turns into a residential development as the State Government wants proposes to do, it will totally vandalise the story of this site and any opportunity for it to be World Heritage listed," she said.

"This is Parramatta's soul. This is where the colony started. This is where 5,000 convict women came to Australia and this was their home.

"One in seven Australians can link back to these women, the mothers of our colony right here.

"It must be heritage listed."