Ms Baddelly has been accessing the vital service for the past four years, and yesterday declared the funding was "badly needed" due to cramped and antiquated conditions and the lack of patient privacy.

"It is a great thing, it is badly needed," she said.

"I think it is very exciting."

The Minister for Health, Carmel Tebbutt yesterday announced the funding, with central sector general manager of Greater Southern Area Health Service Jill Ludford declaring it would be "wonderful for the area".

The funding will allow the unit to increase the current capacity of 24 patients to 40, with the number of chairs to increase from six to 10.

"The additional funding will allow us to definitely expand the size of the building, there will be more privacy for patients, more chairs and we will be able to develop a nice area for patients and their families to wait," Mrs Ludford said.

"Kidney failure is chronic condition, which is a continually growing problem for divisions of health services across the state and with the funding we can now assist 16 additional patients."

While GSAHS is considering a variety of options for the expansion, including looking at new potential sites, the favourable option is to develop the existing premises.

"We are looking at utilising the building we have next door, which was formerly student accommodation before it was vacated," Mrs Ludford said.

"We have already commenced refurbishing the building next door, with a wheelchair ramp and work on the floor, with the intention it would become offices for staff and a waiting area for patients and family.

"We are looking at preliminary plans to expand and develop both buildings as one."

It was yesterday revealed that preliminary plans to expand the existing buildings look "quite suitable on the drawing board".

Member for Wagga Daryl Maguire yesterday said he supported the expansion as a temporary measure to fill a need in the community, but stressed the funding can not be seen as an excuse to further put off the "much sought after hospital".

"The renal support group has fought hard for this funding and they can now look forward to a larger and improved, which I have been told will be completed in June," he said. "This is a temporary measure but ultimately we need the Minister for Health to step up to the plate and deliver the much-needed hospital, which will include a state of the art renal unit."