A Sydney man has been charged after allegedly making young girls work as prostitutes, police say.

The mother of a 12-year-old girl called police early this month after becoming worried about the daughter's association with a man.

Police said they discovered the 53-year-old Granville man had been spending time with the schoolgirl and supplying her with cigarettes, clothing and food.

Two other local girls, both aged 12, had run away from home for a week to be with the man, police said.

Their investigation also identified two 23-year-old women who told police the man had them work as prostitutes when they were 13.

One of the women told police she was sexually assaulted by the man when she was 15.

The man was arrested at his Granville house yesterday, with officers seizing pornography and diaries and items believed to be linked to the historical allegations.

He now faces several charges including aggravated sexual assault of a child under 16 years, cause child between 14-18 to do act of child prostitution and cause child under 14 to participate in child prostitution.

The man has been refused bail and is due to appear in Fairfield Local Court today.

Police said further charges could be laid.