A new village-style development is being created in Karratha's light industrial area to alleviate the accommodation shortage in the booming northwest town.

The $4 million deal will see 70 park homes manufactured in Perth by Blue Ridge Pty Ltd and transported to Karratha.

Three variations of accommodation is being provided including motel style units with shared kitchen and laundry facilities, plus one and two bedroom park homes with their own living area, kitchen and laundry.

All units will be fully furnished.