Nepean Hospital is the principal hospital serving the Nepean-Blue Mountains region, providing health care services and support to about 350,000 people.

Late last year, the Minister for Planning signed off on Stage 2 of the Nepean Hospital redevelopment.

Consisting primarily of the construction of a 7-storey hospital building that will sit about 37 metres in the sky, this building will connect to the recently completed 14-storey clinical and ambulatory services building (aka Stage 1).

With a total gross floor area of 33,650sqm, the new building will provide 78 additional hospital beds, education and training services, medical imaging, nuclear medicine, interventional radiology, intensive care facilities and clinic support areas.

North of the site is the Greater Western Highway and Western railway line, with light industrial uses north of the railway line.

Immediately to the east, south and west is a mix of low-to-high density residential development.

The area around Nepean Hospital is undergoing urban renewal.

The western side of Parker Street is zoned for high density residential, while the southern side of Derby Street and eastern side of Somerset Street are zoned mixed-use.

Strategically, the mixed-use zoned sites are intended to be future medical uses to support the operation of the hospital, such as medical offices, pharmacies, short-term accommodation, convenience stores and other forms of retail.