Rhodes was once the butt of jokes because of the stench that wafted from its paint factories and chemical plants.

But the industrial hub now reborn as a high-density residential precinct has emerged as Sydney's best educated neighbourhood.

Suburb-level data from the 2016 census provided to Fairfax Media by the Bureau of Statistics shows 27.4 per cent of Rhodes residents aged 15 years and over had a postgraduate degree, the largest share in the metropolitan area.

Next highest was Westmead, home to one of Australia's biggest teaching hospitals, with 26.3 per cent, followed by Dawes Point (25.8 per cent) and St Leonards (24.2 per cent).