New height limits in Cottesloe have come into effect after years of wrangling, with development up to eight storeys allowed on Marine Parade.
The eight storey limit applies only to the site of the OBH and six storeys are allowed at the Il Lido site. Elsewhere a five storey limit applies.
Premier Colin Barnett today expressed frustration the new town planning scheme had taken so long to be approved.
He also rejected the idea that the new height limits constituted "high rise".
"This has been a long running issue," he said. "I think this finally considers all perspectives and will enable the future growth of this area, without diminishing its unique character."
Planning Minister John Day said the beachfront needed to be upgraded to contemporary standards to retain its reputation. He said he hoped to see cafes, small bars and short stay accommodation developments along Marine Parade.