Emu Bank would be widened under a Labor plan to bring to life a more than 50-year-old vision for the strip along Lake Ginninderra.
Labor on Monday said it would spend more than $20 million on infrastructure in the Belconnen region if the party was re-elected in October.
City Services Minister Tara Cheyne said she was particularly looking forward to realising a 1968 vision for Emu Bank.
"Emu Bank's been through quite a journey, of different thoughts and ideas about what it should be," Ms Cheyne, who lives in the Belconnen town centre, said.
"But we can all agree that it's absolutely under utilised. And it's not meeting its objective as a destination.
"It can be a destination. And we will do that if we are re-elected."
Emu Bank, where land was sold to developers in the 1980s, has been criticised for being home to too many fast-food restaurants
Ms Cheyne said Labor's plan for the strip, which runs along the Lake Ginninderra foreshore at the northern end of the town centre, would be able to host events like markets and more outdoor dining once work to widen the retaining wall and trees that had destabilised the wall had been removed.
"This gives us an opportunity to fix the issue with the pavers once and for all, and make that area as safe as it can be, but also to realise the opportunities for outdoor dining for markets and simple ease of movement through there," she said at a press conference on Monday morning.
An upgrade of Margaret Timpson Park, which would install public toilets and a playground at the heart of the town centre, and a new all-abilities playground in Florey are included in Labor's Belconnen district plan.
New playgrounds would also be built in McKellar and at the Charnwood Dunlop School.
Labor said it would build a new park-and-ride facility to support commuters to access increased rapid bus services the party promised as part of its transport plan last week.
The party also pointed to its previously announced plans to establish a health, education and sport precinct at Bruce, where it plans to eventually build a new stadium.
"The precinct will include a new Northside Hospital, an upgraded CIT Belconnen and a new Canberra Stadium, which will complement the Commonwealth's major upgrade of the AIS sports precinct," the party said.
Labor has released a series of district plans outlining what it intends to complete in different parts of the city, but has faced criticism from the opposition and other candidates that the plans are made up of reannounced commitments and upgrades that would need to take place regardless of who formed government after the election.
Chief Minister Andrew Barr defended Labor's district plans on Monday, saying the plans reflected the conversations the party's candidates had been having in their communities with voters.
"We've made small and larger commitments, but in an election season, it's entirely to be expected that other people who are seeking elected office, they're hardly likely to be complimentary of announcements that the Labor party is making," Mr Barr said.
The Canberra Liberals' Peter Cain said Labor's Belconnen plan was "recycled, reactionary and disrespectful", and showed the government was tired and complacent.
"ACT Labor clearly think so little of Belconnen residents by re-announcing policies and hoping no-one notices," Mr Cain said.
"A Strathnairn primary school, a West Belconnen Health Centre and the William Hovell Drive duplication are all recycled announcements. Shame on Yvette Berry and Tara Cheyne for treating Belconnen residents with such contempt."
