Livingstone has put out for consultation proposals which include the creation of a new town square in the popular cultural area, it was announced yesterday.
The mayor also wishes to encourage the development of 'world-class buildings' above Waterloo station - one of London's busiest transport hubs - in order to create new homes and jobs.
Livingstone has also highlighted his intention of improving the station's layout.
He said: 'We could improve the area's attractiveness, layout and economy by properly planning its future.
'My vision for Waterloo's development would bring thousands of new homes and jobs to the area and greatly improve its layout and public space.'
This 'Draft Waterloo Development Framework' covers an area including Waterloo station and the South Bank, from St Thomas' Hospital to Gabriel's Wharf.
This area has been identified as an 'opportunity area' in the Mayor's strategy for the capital's development, the London Plan.