The state budget will include $123 million to revitalise neighbourhoods along Parramatta Road, with hectares of open space, bigger parks, urban plazas, and new cycling areas.
The funds, to be announced in the budget on Tuesday, are the first for construction under the government's urban amenity improvement program to transform areas around Sydney's oldest roads.
"This must be one of Australia's ugliest road corridors and our budget investment will enable the transformation of these plans from artists' impressions to construction," Treasurer Dominic Perrottet said.
"We will start to see our hopes for this corridor come to fruition in the next 12 months, which is exciting for the communities that live around Parramatta Road."
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There are 32 projects under the program, including new or extended parks in Auburn and Five Dock, new cycling connections to Pyrmont Bridge Road, and the construction of an open plaza in Parramatta.
There are plans for a "pocket park" in Petersham Street, adjacent to busy Crystal Street, improvements to the entrance at Homebush station, and general streetscape upgrades across the Inner West, Burwood, Canada Bay, Strathfield, Cumberland and Parramatta Council areas.
The program is overseen by the super planning body, the Greater Sydney Commission.
"As Sydney grows, it will be more and more important that we enhance the liveability of our suburbs by creating great spaces where people will want to live and work and are encouraged to get out and walk or cycle or relax in well-designed open spaces," Chief commissioner Lucy Turnbull said.
"The commission welcomes this funding announcement and is delighted to be working with six councils to deliver what will be transformative projects along Parramatta Road."
The amenity program is worth $198 million, and is part of the government's $31 billion 30-year redevelopment strategy for the area, announced in November last year.
The completion of the WestConnex motorway is estimated to divert 50,000 cars a day from Parramatta Road, making room for new homes and jobs.
The $16.8 billion WestConnex project has been highly controversial in Sydney's inner west, where a large number of homes have been acquired for the motorway, and communities hold concerns for the future of local parks and neighbourhoods.
Negotiations with the government on the overall redevelopment strategy have been strained, with councils directed to comply with the plans even if they conflict with their own potential developments.
In another boon for the west, Premier Gladys Berejiklian on Saturday also announced that the NSW government would deliver a $632 million upgrade to Campbelltown Hospital.
Under pressure from one of the fastest-growing populations in the greater western sydney region, the funds will see the hospital gain more inpatient beds, clinic rooms and treatment spaces, as well as additional emergency department capacity.
"We're seeing a baby boom in the area and I'm very pleased to announce that one of the highlights funded in this Budget will be a major expansion of paediatric services," Mr Perrottet said.
The funding builds on a $134 million investment, completed last year, which coincided with the hospital being able to lift the volume of emergency department presentations treated in four hours or less by five percentage points.
The announcement came as the state government revealed it would be injecting a further $20 million into mental health reform, bringing the total spent on mental health services in NSW to $95 million.
With Georgina Cooke