The state government has unveiled a brand-new metro station at Waterloo, the first stop on the City and Soutwest metro line to finish construction.

The Waterloo Metro station in the city's inner south is set to welcome nearly 19,000 passengers when the line opens later this year.

The state government says passengers travelling to the city from Waterloo will be at Central station in two minutes, and Barangaroo in eight minutes.

"This is an important milestone for Sydney Metro, with construction now complete for the first new station on this line," Premier Chris Minns said.

"It's a remarkable brand-new state of the art metro station that will cut significant travel times for those that want to work and live in this great place but haven't been able to connect with different parts of the city prior to today."

It's the first of six new city metro stations to be fully completed, with the other five expected to be finished soon.

"This is a striking station with a design that honours Aboriginal heritage and pays homage to Waterloo's history," Transport Minister Jo Haylen said.

More housing included

The station is situated within the Waterloo Metro Quarter, comprised of three towers and two mid-rise buildings.

The development will include private and social housing, as well as retail and public space.

The government also announced the topping out of one of the nine-storey towers in that precinct, which will offer 70 social homes.

"Waterloo Estate is one of the state's largest ever social housing renewals," Housing Minister Rose Jackson said.

"This is a significant step forward in addressing the injustices of the former government, and ensuring our commitment to providing more homes for those who need them most."

The construction of the metro network has not come without major hiccups.

Last year the City and Southwest Metro project, which the Waterloo station is apart of,  was about $9 billion over its original budget and at least a year behind schedule.

Delays on City and Southwest line

The first section of the line from Chatswood to Sydenham is still on track to open this year, but the part of the project which requires a conversion of the existing T3 heavy rail line to Bankstown has proved difficult.

The 13-kilometre stretch of line needs to be converted in order to carry driverless trains.

Sydney Metro officials blamed delays on rolling industrial action by rail workers, wet weather and the impact of the COVID-19 pandemic.

Sydney Metro said during the industrial action, striking workers refused to shut off the electricity along the line, preventing contractors from accessing existing tracks.