Subiaco will get a much-needed boost after the state government cleared the way for a 16-storey development on the site of the former Pavillion Markets.

Despite opposition from the local community and council, Planning Minister John Day said the amendment would ensure any development on the corner of Roberts and Rokeby roads would include public arcades, food and beverage outlets and short-stay hotel rooms and apartments.

An artist's impression of how the development will look.

This site’s future had been uncertain since the City of Subiaco rejected the proposal in 2011.

Mr Day said the site was an important asset to Subiaco and a prime location for a quality, high-density development that would attract more visitors.