Palais Theatre and Luna Park precinct revitalisation

This project will revitalise this precinct and create a new public space in front of the Palais Theatre. Follow this page for updates on the project.


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



Why are we doing this?

City of Port Phillip, in partnership with the Victorian State Government plans to revitalise and reshape this precinct to create a safer, pedestrian-friendly, attractive and usable space. 

The impact

Road Closure

To create this new space, an area of Lower Esplanade in front of the Palais Theatre has been closed, and the road to the west of the closure (extending to Jacka Boulevard) will be converted to a two-way roadway.

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.


Demolition works have commenced and construction is expected to start September 2022 and take approximately seven months to complete. During construction, some disruption to traffic and pedestrians will occur, particularly during construction of the Cavell Street shared zone. Luna Park and the Palais Theatre will remain open during construction and access to The Esplanade Market and other special events for the precinct will be available using the signed walkways around the project area.

Some noise will be associated with construction works but will be limited to normal working hours. We will provide regular construction updates and advice relating to any temporary road or footpath closures will be provided in advance.


The project will enhance the area by including seating, garden beds, planting of new trees, high quality paving, new public lighting and a shared zone on Cavell Street that is designed to reduce vehicle speed and prioritise pedestrians.

If you have any questions, please contact the Open Space project team:

Online: Online Services
Phone: 03 9209 6777

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