The 4506 hectare precinct is expected to create approximately 5,800 new jobs, with earthworks already underway on a freight hub aimed at connecting Wagga industry with Australia's major cities.

The masterplan for the precinct will be finalised in the coming months, paving the way for streamlined development proposals on the site.

A Regional NSW Department spokesperson said early interest from investors and developers was welcomed, with construction on initial infrastructure expected to start in the first half of 2022.

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Fitzpatricks Real Estate's Greg Howick said the precinct would eventually be released in lots five to eight times the size of what buyers would see across the river, allowing larger businesses to move their operations to the city.

"A new firm into town will assist local businesses because they'll spend in the city, they'll buy supplies in the city," he said.

"Development means jobs and if the state and federal governments are going to pour up to $200 million into Wagga ... that's great for the city."

PRD Wagga's Anthony Paul said the precinct would "open Wagga up to the rest of Australia," which would have positive flow-on effects for local business.

He said it would likely increase demand for other industrial land across the city, with the council planning to enlarge the East Wagga precinct to assist with the growth.

Very little industrial land is available currently as businesses needing storage or other buildings on smaller industrial lots look to buy rather than paying rent.

Mr Paul said land west of Wagga was "basically all filled up" and there were very few lots left in the eastern precinct.

"There is barely a block left that is subdivided and ready to buy," he said.

He said more subdivisions would likely come up for sale down the track while land opened up further east.

Mr Howick said more subdivisions were needed to meet industrial demand, but this would be driven by private developers based on whether they would make a profit.

He said this would come down to the cost and accessibility of infrastructure like water, power and roads.

"If the costs of development are too high and the profit's not there, they won't do it," Mr Howick said.

"It's on the local authorities .. to ensure that the infrastructure is put in place at a reasonable cost to the developer."

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