The road, which is part of a new development off Storrington Avenue in Croxteth, contains 36 houses, flats and bungalows.
– Joe Anderson, Mayor of Liverpool
"If ever anybody deserved to be honoured in the is way it is Rose.
"She was somebody who had real pride in the area she represented and she never missed an opportunity to speak up on behalf of Croxteth and Liverpool.
"We will never forget the way she fought to show the true face of the community when she saw how it had been represented in the aftermath of Rhys Jones' death."
A street on a new estate in Liverpool is being named after a city councillor who died in office.
The new road in Croxteth is being called Rose Bailey Close. Cllr Bailey campaigned for community unity after Rhys Jones was murdered.
She died two years ago while serving as the city's deputy lord mayor.