The NSW government has set aside $105.6 million in its 2022-23 budget for the development of Wagga's special activation precinct (SAP).

Wagga-based Nationals MLC Wes Fang said the money making its way into the budget suggested major progress was on the horizon for the "transformative" $150 million project.

"At the moment it's a field with a lot of trucks moving around, but in a very short period of time ... you're going to see industry popping up," he said.

Strategically located between Melbourne, Sydney and Adelaide and with direct access to the Inland Rail route, the precinct has been designed to entice major companies into building factories and warehouses in the Riverina.

The economic impact of these businesses, as well as the thousands of jobs they are expected to create, are why Mr Fang considers the project to be the "jewel in the crown" for Wagga's growth.

"I don't think there is quite the understanding amongst the community about exactly how transformative the SAP is going to be," he said.

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The funds set aside for the project were the subject of past promises by the NSW government, but this is the first time such a substantial chunk has been put directly into the budget.

Anthony McFarlane, the regional manager for Business NSW Riverina-Murray, said it was great to see a significant amount of the promised funds locked in.

Mr McFarlane said the SAP will be a "massive" economic driver for the Riverina over the coming decades.

"At a time of recovery after COVID, it's great to see the funding locked in to support the delivery of what is a once-in-a-generation program," he said.

"Residents will only fully appreciate what it means and the economic activity that it will bring once they start seeing the businesses building their premises, factories and warehouses."

Mr McFarlane expects the precinct to attract major manufacturing and renewable energy companies, as well as those involved in the circular economy industries.

"It will enable jobs in industries that haven't previously been readily available in regional NSW," he said.

The NSW government has worked closely with Wagga City Council on the project and has designed it to work in tandem with the council's development of the Bomen Industrial Area.

Wagga councillor Rod Kendall said it was "great to see" the government honouring its commitments to the region.

"From a Wagga-centric point of view this is a great outcome from the budget," he said.

"It's very significant and probably one of the state government's biggest commitments to regional jobs infrastructure that we've seen."

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