Perth will need an effective inner city public transport system if it is to rival some of the most liveable cities in the world, the Lord Mayor of Melbourne has told the city's leaders.

Robert Doyle addressed civic leaders in Perth on Melbourne's transformation over two decades into a vital, thriving CBD with a growing population of inner-city dwellers.

Melbourne has been named by the Economist Intelligence Unit's liveability survey as the world's most liveable city for the past four years.

Mr Doyle was in WA at the invitation of the Committee of Perth to offer lessons for the city.

In a wide-ranging address, he sketched a broad picture of how Melbourne had fostered urban renewal, encouraged culture and hospitality, revitalised retail and encourage people to live in the heart of Melbourne.

He focused heavily on the importance of making the city accessible for people as pedestrians, rather than as drivers.

"I don't think any great city in the world is trying to bring more cars into the centre," he said.

Discouraging or banning private vehicles from certain streets had created more pedestrian traffic and greater returns for retailers.

"And Swanston Street, since we closed it to private vehicles, is up 14 per cent in pedestrian activity on weekdays and 20 per cent on the weekends," he said.

"And that means revenue, not just vitality in the streets, but revenue for those retailers and those hospitality businesses."

Mr Doyle highlighted the importance of Melbourne's trams to drawing people into Melbourne's centre.

"I don't think we would be as liveable, without that tram network, because transport and moving people and connectivity is so important to liveability," he said.

Mr Doyle said trams had their limitations, but in a city like Melbourne they were indispensable.

"Tram networks won't move large numbers of people great distances, but as shuttle transport in and around a core city and a few radial lines, it's unbeatable," he said.

WA Premier says light rail still on the agenda

The WA Government campaigned at the last election on public transport, promising a Max Light Rail system to the northern suburbs.

But with increasing costs, rising debt and declining mining royalties, the project has been shelved for the foreseeable future.

Mr Doyle said that the form of the pubic transport network was less important than its effectiveness in moving people.

He said a light rail or similar type of service was crucial to improving the city experience in Perth.

"I think there are ways around it. I don't think you have to have a tram network, but I think you do have to have a highly efficient shuttle inner service," he said.

Premier Colin Barnett agreed public transport was vital, but said it was a matter of timing.

"Light rail is a feature of most major cities. We have delayed the light rail project but we are still looking at it," Mr Barnett said.

"I think he [Mr Doyle] also made the point that you need an inner-city mass transit system, whichever form it takes. So light rail is still on the agenda."