New Melbourne suburb to house 22,000

Up to 22,000 people are expected to call Mt Atkinson home, with plans approved for the new suburb 30km west of Melbourne.

With space for about 8000 new homes over the next 15 years in the suburb near Caroline Springs, it's hoped it will ease Melbourne's housing squeeze.

Planning Minister Richard Wynne on Tuesday confirmed the details of Mt Atkinson including two schools, a train station, shops and community facilities.