A class action lawsuit filed on behalf of residents living around Sydney's infamous tar ponds will proceed.

Justice John Murphy certified the lawsuit against the federal and provincial governments in a Halifax courtroom Wednesday.

People living in the Whitney Pier, Ashby, and north end Sydney areas who claim their health has been harmed by living near the Sydney steel plant and tar ponds will be able to sue the government.

The lawsuit was originally launched on behalf of four people who are seeking compensation for property damage and exposure to toxins.

The tar ponds were the byproduct of roughly a century of steelmaking in Sydney and are now being remediated.

Murphy issued a partial ruling last year saying he would only certify the matter as a class action once the proposed class had been narrowed.

At that point, the proposed class had included residents and property owners within a 5.6-kilometre radius of Victoria Road and Laurier Street.

With files from The Canadian Press