An artist's impression of the Acland Street transformation.
The decision marks the first time part of Melbourne's tram network outside the CBD has been pedestrianised.
Councillors were unswayed by strong opposition from the Acland Street Traders Association and some St Kilda residents,who warned the cherished dining and shopping strip would fall into decline once people lost the ability to drive through or park on the street.
The view down Acland Street.Credit:Luis Ascui
Opponents of the streetscape change split into two groups:those who wanted trams removed from Acland Street and instead terminating outside Luna Park,and those who wanted the route extended along Barkly Street to Elwood.
Port Phillip's new Mayor,Bernadene Voss said the result was exciting for St Kilda,and the street's transformation would encourage more visitors,including people in wheelchairs who currently cannot get to Acland Street by tram.
"We think this will really significantly lift the street,"Cr Voss said."Also,this change doesn't rule out further extension down to Elwood in the future."
She said the city had consulted with traders individually and most supported the council's plan,despite the trader association's opposition.