The Urban Land Development Agency (UDLA) will build subsidised housing in Central Queensland mining communities to help struggling residents.
It is planning to building 12 units and around 200 houses in Blackwater over the coming months, the ABC reports.
Affording housing and rental accommodation is often seen a major issue in the region as nearby mines drive up prices.
UDLA spokesperson Paul Engles told the ABC it is aiming to build a variety of housing in the region.
“We’re also working very closely with the council to ensure that there’s some product available for key workers, people who may not be on mine incomes," he said.
"They find it a bit tough to rent in these towns – we’ll actually be producing some product which is subsidised rent for key workers."