A nine-metre-high elevated track will be built along Melbourne's Cranbourne-Pakenham line to carry a sky train, part of the Victorian Government's effort to combat traffic congestion.

Key points: Construction on raised train line to start later this year

Construction on raised train line to start later this year Residents concerned about safety, financial, lifestyle impacts

Residents concerned about safety, financial, lifestyle impacts Government will not reveal if compensation is an option

As part of the $1.6 billion project announced on Sunday, nine level crossings will be removed along the Cranbourne-Pakenham line, with three sections of the track to be elevated.

The plan, floated earlier this year, will also free up 11 MCGs worth of open space.

The Government said the new track would include barricades to stop train commuters being able to look down into houses and backyards along the route.

"This is going to significantly reduce road congestion. Some of these boom gates are down for up to 87 minutes in every two-hour morning peak period," Public Transport Minister Jacinta Allan said.

A before and after impression of one section of the proposed sky rail. ( Victorian Government )

"We know it's a significant safety risk and causes great frustration to local motorists."

Construction on the sky train is expected to start this year, but some residents have already voiced their anger.

Karlee Browning said her Carnegie house, which backs onto the line, would be completely overshadowed, and the mother of two was also worried about safety.

"[There's] a very real possibility that there could be a derailment onto my house onto my family," she said.

"It's not just suburban trains, we're talking about freight trains that could weigh up to 80,000 tonnes fully laden.

"We have a roof full of solar panels, and I have not doubt it is going to be a huge overshadowing."

Ms Browning said given the built-up nature of the area, the open spaces touted by the Government would likely become car parks, not open space.

Legal options, compensation 'talked about'

Hundreds of concerned and angry residents attended a community meeting at Murumbeena to discuss the issue.

Ms Browning, who was one of the organisers, said she was also concerned about the effect the sky rail would have on the value of properties and would seek compensation.

"Legal action is something that is being talked about [among residents]," she said.

"I want to be compensated for the value that's being slashed off my house.

"I want to be compensated for the things I've invested in my house like the $6,000 solar panelling that will be rendered unless.

"I want to be compensated for impact on my family, on my security, on my privacy."

Nobody voted for sky rail: Opposition

Opposition spokesman David Davis said the Government never gave residents the chance to chance to vote on the plan.

"Local communities will be shocked by this proposal; they were not given warning," he said.

"A massive train line up in the air impacting communities with deafening noises and massive spaces underneath that will become anti-social areas.

Angry residents aired their concerns at a meeting in Murumbeena. ( ABC News: Jessica Longbottom )

"It will cut a swathe through established suburbs, shocking people and damaging communities.

"This is not what was promised at the election. Nobody voted for sky rail."

Ms Allen would not say if any compensation would be offered to those living along the rail line, but said consultations would be held with the local community.

"We're wanting to make sure that the community has an opportunity, particularly on having a say what they want to see that open space used for," she said.

"This is certainly going to create a lot of conversations in the local community, and that is why the next phase of intense community consultation is going to start today."