Cape Peron in the Rockingham Lakes Regional Park has been given top conservation status, meaning no development can take place without approval from both Houses of Parliament.
Known for its protected beaches, limestone cliffs and panoramic views, the popular headland has been transferred from a Class C to Class A reserve by the State Government.
"Class A reserves provide the greatest degree of protection for areas of high conservation or community value and this decision solidifies the Cape as a natural wonder for eco-friendly tourism opportunities," Planning Minister John Carey said.
In 2018, Cape Peron was identified as a Planning Investigation Area after a proposal for a marina development at Mangles Bay was withdrawn.
A working group of stakeholders, supported by a community reference group, was then established to determine the future use of the area.
"The conservation classification brings certainty to the local community, which has been campaigning for the protection of this area for several years," Mr Carey said.
"Cape Peron is highly valued by the community as a coastal park with significant heritage and environmental value."
Stage One of the Class A reserve involves about 66 per cent of Cape Peron, or around 120 hectares.
Extra areas will be added to the reserve in stages once there is more certainty about future land use and roads.
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