Government has lofty plans for Victoria Park village

Victoria Park at Zetland has been earmarked as the site for the village, which will feature apartment blocks specifically designed for seniors.

"The Government is planning for the ageing population, helping to provide appropriate accommodation which is close to services," Mr Sartor said.

"At the same time, we want to protect communities from excessive development and ensure that proposed seniors' living developments are compatible with the local area."

Mr Sartor said that there would be more than 2.6 million people aged over 55 years living in NSW by 2028, which would be nearly one-third of the state's population.

He said that the "vertical village", which is an Anglican Retirement Villages project, would be a significant first for older people living near the City and in the Eastern Suburbs.

NSW Ageing Minister Kristina Keneally said the initiative would meet a need for quality retirement residences in the Eastern Suburbs, which at present has few options.

Anglican Retirement Villages CEO Ken Barber said concept plans for the village would soon be developed.

"Victoria Park lets older people live close to their current suburb and to maintain close contact with family and friends," Mr Barber said.

The facility is expected to be completed by 2010.