The Land and Housing Corporation intends to include 10 units with one and two bedroom with on-site parking and landscaping at the intended site on South Parade near the Duke of Kent Oval and Sturt Highway.

The corporation has begun seeking input from nearby residents before finalising the planning process and starting construction.

The government has described the project as "well designed and of a low scale, two storeys, which complements the character of the surrounding neighbourhood".

Wagga-based Nationals MLC Wes Fang said the project's construction would create about 22 equivalent full-time jobs.

"What's really good about this project is we are looking to maximise the use of local contractors," he said.

"In a time of drought we need to do what we can to support our communities and keep the economy going.

"We are looking to use as many local trades as possible so that not only does Wagga get the benefit of social housing increase but also gets an economic boost."

The development will cover a block of just under 1000 square meters at 8-12 South Parade at the corner of South Lane.

Subject to planning approval, construction of the project should begin in mid-to-late 2020, with the first residents likely to move in mid-2021.

As of 2019 there were more than 300 people on the Wagga's waiting list for social housing on the NSW housing register.

Social workers have warned that some people could spend more than 10 years waiting for social housing in Wagga.

Former Wagga social housing resident Christine Norton said the extra units should help ease the waiting times but said the government could also improve the situation by re-purposing the city's vacant houses.

"When I was on the list I only wanted a two bedroom unit because there was only my son and myself and I didn't want a garden," she said.

"A unit would have been perfect but I was given a house.

"Families of three or more should get a house and those who are single or two people should be given units."

Water, Property and Housing Minister Melinda Pavey said this project would form part of the government's investment in "new, fit-for-purpose social housing across regional NSW".

The Land and Housing Corporation will be responsible for seeking community feedback and assessing the development proposal.