Dozens of protesters have gathered to rally against the redevelopment of the historic site, which was approved in December.
The site was established in 1973, located on land traditionally inhabited by the Gadigal people.
It has since become known as a place for the Indigenous community.
Locals called for support last week, stating that "an Aboriginal Tent Embassy stands in their way and mob are calling for our support" in a Facebook invitation to the protest action.
Activist Kate Ausburn told SBS people had gathered with banners since the early hours on Monday morning.
"There's a pretty decent crowd down here in the cold," she said.
"The crowd here is probably more than what the police were expecting."
Speaking in December, the then NSW Premier Barry O'Farrell said the Pemulwuy redevelopment project would include 62 affordable houses, a 42-unit student housing complex, a gym, a childcare centre and a community gallery, as well as open space.
He said there would also be shops and a 115-space underground car park.
The Pemulwuy Project is an initiative of the Aboriginal Housing Company. It's CEO, Mick Mundine was present in Redfern when protesters gathered at the Block.
The rally coincides with the beginning of NAIDOC Week.
More to come.
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