Estella Progress Association president Mark Brown said the school, when completed next year, would encourage new businesses and services in the area.

"This is a good step in ensuring that there are appropriate facilities, not just next year but well into the future, for the better sustainment of Estella and surrounding suburbs," he said.

"As well as securing other assets including but not restricted to fuel stations, supermarkets and other services that are currently unavailable in that region of Wagga.

"Although it is a step in the right direction, I don't think we should be congratulating too loudly or early given the school itself has yet to be built and staff, teachers and students have yet to be allocated."

NSW Premier Gladys Berejiklian announced on Thursday that the school was one of the projects approved through a new fast tracked planning process.

Independent Wagga MP Joe McGirr said the new school would provide high-quality learning spaces for generations to come.

"This brand new school is wonderful news for our community and, once complete, will provide places for 480 students from kindergarten to year 6," Dr McGirr said.

"The school will not only provide new and improved education infrastructure, but will also inject $36 million investment into our local area and create more than 300 jobs during construction."

The new school will include 16 flexible learning spaces, a library, hall, canteen and covered outdoor learning area, administration and staff facilities and outdoor multipurpose activity areas.

The school will be build on a 30,000 square metre block between Estella Road and Darnell Smith Drive, next to Peter Hastie Oval.

Last month the Estella school proposal was placed in the second tranche of projects for the NSW government's Planning System Acceleration Program, which was designed to speed up approval for work that would benefit the public at large and create jobs.

Northern suburbs families have been pushing for a new school in their area since at least 2016, with the proposed site in Estella announced in 2018.

A Department of Education spokesperson has previously said the school was "on track to open its doors for students in early 2021".

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"Main construction work is expected to begin in early July," the spokesperson said.

"Early works have already begun on site. The school plans to begin accepting enrolments next term."

During 2019, Wagga's northern suburbs recorded the third-highest rate of increase in regional NSW at 4.8 per cent, behind Queanbeyan at 5.7 per cent and Maitland at 6.3 per cent.