Lord Mayor Sally Capp said the land was purchased as part of Council's strategy to create and expand parkland across the city.
"We all value our parks and outdoor space, but COVID-19 restrictions have shown just how vital green space is for people's mental and physical health," the Lord Mayor said.
"We've purchased this site to create a new space for parents to take their kids and the broader community to enjoy nature. This new park will also help manage any flooding from the Moonee Ponds creek.
"Melbourne's west is particularly low on public open space that's why we're pleased to be taking the next step in turning this site into a place for people to gather and connect, relax and reflect."
The land at 70-90 Chelmsford Street was purchased for $5 million, funded through the City of Melbourne's Public Open Space reserve.
There continues to be a huge increase in visitors to city parks, as people reconnect and gather outside after months of COVID-19 lockdowns.
Environment Portfolio Lead, Councillor Rohan Leppert, said the City of Melbourne has been able to take an active approach to increasing outdoor community space since introducing new open space contribution rates to the Melbourne Planning Scheme in 2016.
"Every time private land is subdivided we require a contribution to help fund the purchase of public open space," Cr Leppert said.
"In 2015, we invested $1.7 million to purchase a property adjoining the Hawke and Adderley Park in West Melbourne allowing us to more than double the size of the local park.
"And now we have made our first land purchase in the Macaulay precinct, in Kensington. We know that providing open space for a growing population is among the most important roles we will play in coming years."
"Backyards in the inner city are shrinking and more people are living in apartment blocks. Our plan to expand open space will ensure people are able to enjoy more open spaces for recreation, public gatherings and relaxation."
The Lord Mayor said alongside requiring public open space contributions from developers, the City of Melbourne also invests heavily in capital projects to expand parks and gardens.
"The City of Melbourne and CBUS recently opened a new 2,000 square metre public open space for Market Street alongside the Collins Arch development," the Lord Mayor said.
"It's the first park created in the central city since City Square was developed in the 1970s."
Today's announcement builds on Council's 4-year plan to increase green open space in the municipality to improve and promote public health and wellbeing, whilst also prioritising our environment.
To find out more visit our Open Space Strategy.
