Sherwood Overseas Co Pty Ltd and the State Planning Commission propose to develop the north west sector of Herdsman Lake, to be known as Floreat Lakes Residential Development. The proposal, which is dependent upon realignment of the Stephenson Highway road reserve, entails:

• Dredging of both public and private land to continue the protective moat around Herdsman Lake and provide fill for urban land removal of peat from urban land and road reserve,
• placement of peat in adjacent Industrial Lake on the foreshore and in the moat
• Importation of fill
• development of the urban land for residential purposes
• development of the foreshore area for recreation and conservation purposes
• diversion and management of the Balgay and Osborne Main Drains