The great migration north continues, with the West Australian government pushing ahead with plans to develop modern cities in the remote Pilbara region.
Lack of housing and infrastructure have long been the biggest barriers to growth in WA's northwest mining and gas precinct, which contributes significantly to Australia's economy.
Most workers are flown in and out, or put up in temporary accommodation while large resource projects are completed.
Apart from the social consequences of having thousands of mostly male workers fly in and out of the region on a regular basis, the resources boom has pushed housing costs to some of the highest in the nation.
It is not uncommon for modest rental homes to fetch more than $2000 a week in the mining hubs of Karratha and Port Hedland.
Announcing the preferred developer for the WA government's $1.5 billion Karratha City project, Regional Development Minister Brendon Grylls told reporters in Perth on Wednesday the coastal town would soon be one of Australia's most modern and vibrant centres, with a population of 50,000.
The Karratha project is part of the state government's ambitious multibillion-dollar Pilbara Cities vision, announced two years ago.
"Many people thought developing in the Pilbara was too hard," Mr Grylls said.
"We've delivered some significant projects in a remarkably short amount of time." Mr Grylls said 1000 new homes a year would be built in Karratha.
"The cost of housing is a huge problem in the Pilbara," he said. "By getting the supply side right, we put downward pressure on property prices, downward pressure on rents.
" Premier Colin Barnett said while the number of fly-in, fly-out workers would continue to rise in the short term, most would eventually be replaced by permanent northwest residents.
"Mining companies themselves want to see more of their workers housed in the region," he said.
"Fly-in, fly-out has been a feature of the mining industry since the 1980s. "(But) there are social consequences, especially when you have families separated."
Mirvac WA was named as the preferred developer for the Karratha Cities project and will partner with the WA government and LandCorp.
The developer has predicted a shortfall of 2000 to 3000 dwellings in the region by 2016.
