The 16-section subdivision at Porpoise Bay will bolster a popular tourist area which has few accommodation and visitor facilities, Wayne Foley, from Porpoise Bay Ltd, said in a statement.
The development follows "extensive consultation" to protect and enhance an area of outstanding natural beauty.
Three of the 16 sites have been designated as visitor accommodation while another will house a cafe overlooking the bay.
The cafe will seat up to 75 guests and offers uninterrupted beach views.
"We've been working on this project for six years and are delighted to get to the stage where earthworks were completed just before Christmas and the sections are now going to market," Mr Foley said.
He described the area as " an unbelievably magical spot" which did not offer enough in the form of accommodation, housing or visitor facilities.
The sheltered bay, close to Curio Bay, is home to a pod of rare Hector's dolphins.
Mr Foley said his company recognised the area was special and boasted outstanding wildlife and natural landscapes and that the development needed to blend in with that.
Section sizes range from 88sq m to 2226sq m and are fully landscaped.
Prices range from $195,000 to $345,000.
Titles are expected to be issued in June this year.
