Julian Rocks, a cluster of small rocky islands off the coast of Byron Bay, has also been renamed Nguthungulli in the dual-name model policy.

A third site, Weir Park, in Bangalow was renamed Piccabeen after the unique palm trees growing in the nature reserve.

"The Arakwal and other Bundjalung people have had unbroken connections to these places through Story, kinship and Language since the first sunrise," Aboriginal affairs and treaty minister David Harris said.

"It is only right to honour that history and that connection through names that bring Story and Language to life for all Australians to enjoy."

Signposts and maps would feature both place names.

"The policy aims to recognise traditional Aboriginal place names alongside existing European names," the NSW Government announcement said.

"Where a geographical feature has a non-Aboriginal name, a traditional Aboriginal name can be assigned.

"The name will hold equal status to the non-Aboriginal name and can be used individually or combined."

The dual-name policy follows a number of similar decision regarding the place names of sites along NSW's east coast.

Yurrandubbee/Macleay Point in Sydney, Yohaaba/Port Hunter in Newcastle and Cooyoyo/The Castle near Ulladulla are among 45 NSW sites that made the switch.

"I'm thrilled that these changes are being made and these names, that are recognisable to all of us who live here, will start to have wider recognition," Byron Bay deputy mayor Sarah Ndiaye said.

"It's a really empowering process for our local mob and I hope it's the beginning of more name changes for significant places," she said.

The Indigenous name for Julian Rocks, which is home to some of the most diverse marine wildlife on the planet, translates to "Father of the World" in some Dreaming stories of the Bundjalung of Byron Bay (Arakwal) people.

Walgun, the name for Cape Byron, translates to "the shoulder" and is a significant gathering site and lookout point.

"A 'dancing circle' is believed to have once been located on the crest of the headland, which was leveled in 1899 to make way for the construction of the Cape Byron lighthouse," the Arakwal Corporation said in their statement on Walgun.

"This circle was used in initiation ceremonies for boys."