The package, announced by Regional Development and Lands Minister Brendon Grylls, will include the provision of 250 dwellings at the new Osprey service worker village in South Hedland over the next six to nine months.

Grylls said discussions to finalise the preferred proponent for the development and operation of the village were under way.

An initial 125 dwellings would be offered through a registration of interest process administered by the Department of Housing.

The package includes the fast-tracking of the development of 80 vacant lots in Port Hedland and South Hedland and an additional 45 dwellings will be made available in the next three months through the Department of Housing's existing stock in Hedland.

Grylls said he recognised there was an immediate need for housing for service workers in the town.

"The package we're announcing today will ease this pressure through the delivery of 375 dwellings within the next nine months," he said.

Housing Minister Troy Buswell said this package was essential to ensure continued growth of the town.



"This housing shortage impacts on businesses and local workers employed across a range of industries," he said.

"This initiative is about providing affordable accommodation options for businesses that may otherwise be forced to relocate if their housing needs cannot be met."