The money will go towards land acquisition and building electricity, water, fibre-optic internet and hydrogen gas infrastructure for future industrial businesses at Wagga.

Wagga mayor Greg Conkey said it was "very rare" for any council to "receive a cheque for $137 million".

"I keep saying this is the most exciting time for this city, but over the past four or five years that has been the case and over the next number of years it will so be even more," Cr Conkey said.

"The bottom line here is jobs and over the next 10, 15 or 20 years this area will attract something like 6000 extra jobs, not just for the city of Wagga but for this region and that's phenomenal."

Wagga-based Nationals MLC Wes Fang announced the funding on Monday morning and said the precinct, designed to fast-track industrial planning approvals, was the biggest upcoming project in the city.

"$137 million for the project, added to the $20.6 million that we have already committed, and that brings the total spend by the state government for the special activation precinct to over $158 million," Mr Fang said.

"That's a huge investment for this region and it's really important for the growth of Wagga and surrounds to get to that 100,000 population target.

"When I'm asked what is the single greatest project that we are doing in this area, I will always say it's the special activation project and I think most people don't understand what a game-changer this is going to be."

Mr Fang said the precinct would create the ability for businesses to go from "conception to approval in 30 days" and allow "the industries we are looking to bring here to have confidence and the ability to expand into markets by accessing RIFL".

Contractors for the council are currently leveling ground for the Riverina Intermodal Freight and Logistics hub (RIFL) at Bomen.

The new funding will go towards preparing land to the west of the future RIFL site and Mr Fang said construction on the new infrastructure will begin "at the start of next year".

"We will be able to have business able to start construction at their sites, once they have approvals, in line with ours and we will start seeing dirt being turned very quickly," Mr Fang said.

"The special activation precinct provides all the infrastructure you would expect in a major metropolitan industrial park but the key difference is that we will have more ... [for example] the ability to access hydrogen and hydrogen is going to be one of the energy sources of the future.

"What we are also doing is providing that land at 5 or 10 per cent of what [people] would pay in a metropolitan area."

Wiradjuri elder Uncle James Ingram, who performed a welcome to country ceremony, said he hoped to have a training centre established at the special activation precinct so Aboriginal people would have a chance to work at the new businesses.

What is currently a paddock at Bomen containing sheep will in the next few years see infrastructure rolled out to attract new industrial projects.

Wagga Business Chamber business manager Serena Hardwick said the new funding would "allow the infrastructure that we need to bring news businesses to Wagga".

"It's a but of a cumulative effect with the [federal] investment in Inland Rail and the council's RIFL, and it's a pretty exciting time for Wagga," she said.

Ms Hardwick said the precinct would have a positive effect on Wagga and the region as a whole, as the new businesses at Bomen would require goods and services.

Business NSW Murray-Riverina regional manager Anthony McFarlane said the funding was a "milestone" and gave businesses "confidence as the state government was committed to the project".

"The investment will have a multiplier benefit through what the businesses spend in the supply chain and that will flow through the community," he said.

Wagga independent MP Joe McGirr said the funding was "very significant" and represented an opportunity for Wagga "to lead the rest of the state".

"It wasn't that long ago that in rural regions in NSW we were just talking about decline, about going backwards and how we would survive with the loss of jobs," Dr McGirr said.

"I have to congratulate the government on the effort that it has made to renew regional NSW.

"This will be a state-of-the-art facility for industry ... it will have the right combination of industry, educational opportunities and cutting-edge technology so jobs are secure now and into the future."