Stage One of this residential development covers the southern area of the WestWyck site that abuts Hunter St and comprises five new town houses on the Hunter St frontage of the school grounds and seven warehouse-style apartments skilfully designed into the southern classrooms and corridors of the school building.

Construction commenced on Stage One in 1998 and the first apartments were sold in 2001. The early settlers began arriving in winter 2002. By 2006 six of the southern schoolhouse apartments had been sold and were occupied. The townhouses were completed and occupied the following year. In 2010 Mike and Lorna moved into apartment 4, completing the first stage of the eco-village. Stage One is now home to a thriving community of approximately 30 people.

Three architects played a significant role in the first stage. Peter Mills of Mills Gorman inspired the overall concept plan and designed apartments five and six and all five townhouses. Michael McKenna designed apartments one, two, three and seven and provided the initial footprint of apartment four. Multiplicity completed the fitout of apartment four.

Five of the seven apartments within the school building were built by Greg Tainsh of Jura Nominees, a local Brunswick builder. The sixth was built by Craig Jones, another local Brunswick builder, and the seventh by owner occupier Derek Maguire. The five new townhouses on Hunter Street were built by CDM Building Group.

Since late in 1993, the northern section of the school building has been devoted to low-cost, affordable communal living and has been home to many including the WestWyck developers Lorna Pitt and Mike Hill for seventeen years.