The proposed site is one of two adjoining shop fronts on Baylis Street currently advertised for rent and was formerly the site of The Borough and before that the Cache Café.

An application to council has proposed the space be converted into a cellar door showcasing "specialty wines, spirits and beers predominantly produced in NSW and the surrounding regions."

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The proposed development cost is estimated at $120,000 with the operation listed as a bar and retail business.

The application proposes the venue would host tasting and masterclasses, adding an experience-focused venue to Wagga's drink and dining options.

At the front of the venue would be a small bar offering takeaway and dine-in options with snacks available but no kitchen.

The hours proposed for the venue are 10am to 11pm Mondays to Saturdays and 10am - 9pm on Sundays.

Wagga Business Chambers' Serena Hardwick said diversifying the city's hospitality options should be a priority as more visitors and new residents arrive in Wagga.

"We've seen diversity increase in the hospitality space and there is an appetite for it," she said. "Metro-style offerings have been well received and that scene needs expanding."

"Having these different options creates livability in the city."

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