A third runway at Melbourne Airport has been given the long-awaited green light but the timeline for the site's rail connection remains unclear.
The federal government announced the $3 billion project's confirmation on Friday, with conditions to share and minimise the effects of aircraft noise on surrounding communities.
Transport Minister Catherine King said it would allow the airport to cater for the demand of a growing city and provide better access for freight and passengers.
"Throughout my consideration of this proposal, the needs of the local community have been front of mind," she said in a statement.
The most comprehensive set of conditions for a project of this type had been imposed, the minister said, referring to noise abatement requirements.
They include a legally enforceable commitment to restore the length of the east-west runway and an airspace plan to prioritise sharing of aircraft noise between affected areas.
A noise amelioration program for communities most impacted is also required along with conducting a community health study into the effects of noise before and after the establishment of the third runway.
Treasurer Tim Pallas said he hoped the runway and rail projects would be completed about the same time after the $10 billion rail line was delayed due to design disagreements.
"There are challenges ahead, a third runway is critically important, and it will, of course, require an airport rail to that facility at a time broadly consistent with the timeline that that third runway opens," he told reporters.
"There has been a delay as a consequence of the disagreement that we had around the design specifications.
"All that's behind us, and we need to move on as quickly as we can."
In July, the government successfully argued an above ground option would be quicker and cheaper while the airport favoured a future-proof underground facility.
Opposition energy spokesman David Davis said the runway's confirmation placed a spotlight on the airport rail's ambiguous timeline.
"It does raise, a set of questions, where is the airport rail?" he told reporters.
"The Victorian government has been in power now for 10 years...the state government has not been able to bring the airport rail to conclusion. You've got to ask what's going on."
Melbourne Airport chief executive Lorie Argus said the project would create 51,000 jobs in tourism, agriculture, education and export and bring $6 billion a year to the state's economy.
The parallel runway system will increase the airport's capacity by allowing simultaneous take-offs and landings, reducing delays and giving airlines more room to grow.
It will be built 1.3 kilometres west of the existing north-south runway and is expected to open in 2031.
