The New MetroRail City Project was completed in 2007 in Perth, Western Australia. The project included construction of two underground stations, twin bored rail tunnels of 1.4 km combined length and cut-and- cover tunnels and dive structures of about 1 km total length. It is the first major underground construction project within the Perth central business district (CBD). This paper provides an introduction to the project and describes the geology and hydrogeology of the area. Ground conditions varied significantly along the alignment from soft estuarine muds in an area of reclamation to very dense cemented sands and very stiff to hard clays. Deep foundations for the project extend down into the bedrock below the CBD, a Tertiary siltstone/sandstone. Key geotechnical hazards encountered during the project are discussed. The building protection methodology on the project is described, including damage assessment, condition surveys, monitoring and protection of key structures.