NSW Nationals Upper House MP Sam Farraway announced the grant in Canowindra on Tuesday.

The $1,826,747 - from the state government's $50 million Resources for Regions fund - will be used to build a new amenities block and spectator seating at Canowindra Oval.

Mr Farraway said the Canowindra Oval hosts a variety of events across a broad variety of user groups.

He said the upgrades would enhance the functionality, safety and appeal of the venue.

"This project will enable Canowindra to host events on a larger scale and enable local clubs to invite others from around the Central West to play at the oval - having a flow on effect throughout the region and the local economy," Mr Farraway said.

"It is projects like this that will bring new opportunities to the Cabonne region and will provide locals of all abilities, genders and ages better access to local sporting competitions and facilities."

Cabonne Shire Council mayor Kevin Beatty welcomed the announcement.

"This project has been a high priority for Canowindra and the hard working Canowindra Sports Trust for many years," Cr Beatty said.

"Council can now get to work in partnership with the Canowindra Sports Trust and deliver a high quality facility to the local community, as well all the wider region's sports teams that no doubt will take advantage of what will be a top class asset."

Cr Beatty said the funding had come "at a great time" given what the people of Cabonne had endured with drought and coronavirus.

For further information, go to nsw.gov.au/resourcesforeregions.

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