Palais Theatre and Luna Park precinct revitalisation

We’re transforming the Palais Theatre and Luna Park precinct. The Luna Park and Palais revitalisation project is supported by the Victorian Government.


Located between Acland Street, the St Kilda Foreshore and the Esplanade Market.



Why are we doing this?

Luna Park and the Palais Theatre are among the most recognisable and beloved locations in our City. And we want to make sure the area is safe and comfortable for everyone who wants to come to the precinct. That’s why we’re creating a safe, shared space that brings the community together around this iconic precinct.

The impact

Road Closure

Cavell Street
Cavell Street is now closed while construction is underway.
Upper Esplanade (westbound)

We will be closing Upper Esplanade (westbound only) from Monday morning on 25 March 2024.  It is estimated the closure will be in place for six to seven weeks.

This is necessary to construct the hostile vehicle management barriers along the roads edge. Detours and road closure signs will be put in place. 

Trams will not be affected and public buses have permission to use the tram tracks to enable them to stay on their designated routes. 

To ensure we can accommodate the many visitors we get over Easter, the Upper Esplanade roadway will be reopened for four days. Please see traffic map below for road closure and detour information.

Other disruptions to traffic and pedestrians will occur during construction. Any temporary road or footpath closures will be advised in advance.

The road closure process has been undertaken in accordance with the Local Government Act 1989, which required the proposed road closure to be publicly advertised. Council approved permanent partial closure and change in road function of Lower Esplanade at its 8 December 2021 Ordinary Council meeting. Council reports are available on the Meetings and agendas page of Council’s website the Friday before each Council meeting:

Cavell Street shared zone
Converting the section of Cavell Street between the Palais Theatre and Luna Park to a shared zone is being managed through a separate process in consultation with the Department of Transport (DoT). Approval from DoT was granted in May 2022 supporting the proposed changes to provide a safe and compliant outcome for pedestrians and vehicular traffic.


This will be a community-centred space that includes seating, garden beds, new trees, high quality pavement, new public lighting and a shared zone on Cavell Street to reduce vehicle speed and prioritise pedestrians.

Traffic map for road closures and detours

Background to this project

An initial concept design for the precinct was developed in 2020. Following further examination of the scope, the project was paused because the original design cost more than expected.

Following the creation of a new design, we developed a flood model to see how stormwater might impact the area. This revealed some issues we needed to fix to ensure the area won't flood in the future. Thanks to this modelling we were able to catch this issue before starting construction. We’ve now taken the necessary steps to address this, and now we’re ready to start creating a safe, accessible and community-friendly area in this famous precinct.

Get in contact

If you have any questions, please contact the Open Space project team:
Online: Online Services
Phone: 03 9209 6777

Get the latest news straight to your inbox

Divercity brings you the latest City news, what's on, service updates and local exclusives, such as discounts and freebies.

To keep up to date with news about your City and Council, sign up now.