Communities will be given proven and region-specific strategies and suggestions to deal with racism in their area.
Kevin Dunn from the University of Western Sydney has conducted a 10-year survey of the prevalence of racism and cultural intolerance of Australia.
The 2001 NSW data shows Fairfield and Liverpool are 82.5 per cent more racist than the general population.
Half of those asked believed diversity equals a weak nation and almost one in five people denied having a racial prejudice.
But 36.3 per cent described themselves as being anti-Asian, 37per cent as being anti-Indigenous, 60.3 per cent as anti-Muslim and 30.8per cent anti-Semitic.
And 30.4 per cent believe Middle Easterners don't fit into Australian society and 16.7 per cent believe the same about Muslims .
Professor Dunn said the project's next step was to come up with ''anti-racism suggestions'' to publish online, so local councils, governments and community groups can combat racist behaviour in their communities.
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