Onslow is 12km away from Chevron's $29 billion Wheatstone LNG project and is expected to grow from 700 people to 2200 people in the next three years as the project creates more than 6500 direct and indirect jobs.

The bulk land purchase will enable LandCorp to begin construction of 220 lots in stage 1 of the estate.

"Wheatstone and other resources projects are creating thousands of jobs in the area but have also increased pressure on existing housing stock in Onslow," WA Premier Colin Barnett said.

"This agreement will help ease pressure and ensure that small businesses and locals have access to suitable accommodation."

Lots in the estate are expected to be released by LandCorp for sale mid-year.

Chevron was forced to stop using its Wheatstone-adjacent Brolga camp for accommodation at the beginning of the year after safety concerns were raised regarding its proximity to BHP's Macedon project, which is now in operation.

Chevron bought the camp from BHP upon the completion of Macedon last year, intending to house some of its 3000 workers constructing the Wheatstone project.

Chevron has since been approved to continue using the camp.