The new facility, which is based at the airport, will allow cars to be tested in Australian conditions on Australian roads, instead of vehicles being sent to Europe to be tested.

It will be run by the Centre of Road Safety and was unveiled on Friday with a $1.5 million dollar spend from the state government to create a hub to test both self-driving vehicles as well as emerging technologies designed to make cars safer.

CRS executive director Bernard Carlon said it was too early to say how many jobs would be created due to the facility, but also didn't put a limit on how big the facility could be long-term - especially if it attracts international interest.

Centres in Europe, which have been running for decades, have hundreds of employees.

"We're at the point where we're essentially open for business," Mr Carlon said.

"For every test that will take place out here in Cudal there'll be, vehicle manufacturers and people travelling overseas to oversee the tests, people conducting the tests on-site so there'll be a lot of activity here bringing people to the region to do these tests in a regional location."

The airport is currently being leased by the CRS, and is currently negotiating to buy the property.

The facility will provide vehicle manufacturers from all over the country, and south-east Asia, a place

While most workers at the facility will travel to Cudal from Sydney, the long-term goal should the centre prove viable is to move employees to the Central West.

Minister for regional transport and roads Paul Toole said it was "fantastic" to have the facility in Cudal.

"I know the CRS had been looking at a number of locations and this site became available, it's got the airstrip already and it's sealed, it has the hangers where we can store the vehicles and it's a fantastic opportunity," he said.

"[Job numbers] a bit of an unknown at the moment as what manufacturers want to get their vehicles tested at this location. In the past we've seen them sent overseas, but now it'll be the reverse and we have the opportunity to grow with jobs on the site.

He said it was "an Australian first" with the chance to be a boon for the region long-term.

"It's early days but it's something I expect will be popular all around the world."