The project will include the construction of 20 covered stables, 60 uncovered day yards, 20 campsites and associated parking and roads for horse-related vehicles.

Helped by $1 million Infrastructure NSW grant, the project forms the second phase of works at the Riverina Equestrian Centre.

"We'll be able to draw [equestrian] competitors from all over the country," said Michael Lucas, president of the Riverina Equestrian Association.

"[In the past] we have missed out on high-level state and national events. We have held a state-level event but we had to hire in the facilities to run that, which diminishes the economic boost to the town."

It is expected the facility will be able to accommodate 600 horses and roughly 200 competitors at full capacity.

"With equestrian events, you tend to have a lot of helpers. Professional riders have grooms, mums and dads with kids who are competing, you can nearly triple the numbers with those attending," Mr Lucas said.

With the facility to be finalised by the end of this year, Mr Lucas is hopeful the pandemic restrictions will allow for the centre to be used at its full capacity early next year.

"Everyone has basically had to go into a recess now, so it's not bad timing to be under construction at the moment. It will allow us when we get out of COVID-19 to kick off straight away," Mr Lucas said.

"Our first big event will hopefully be sometime early in the new year, but it does depend on the restrictions."