Andrew Gee announced the funding on Tuesday which will be given out under the Building Better Regions Fund. The cash splash will involve a power upgrade to the 16-acre site to make the location more attractive to overnight campers.

"Located smack bang [in between] Orange and Blayney and just moments from Millthorpe, the site has enormous potential to attract travellers looking for a quiet, centrally-located camping site close to many must-see sites in the area," Mr Gee said.

"These tourists will take their dollars to the local pub, bistro and other small businesses in Spring Hill, giving the village a boost as the region emerges from COVID-19 travel restrictions.

"Spring Hill is a village with a very big heart, home to many folks passionate about making their community the best it can be," the Federal Member for Calare added.

"The power upgrade to the Ground means that it can host more community events with more people to attend.

"Thanks to the energy and enthusiasm of local residents, the 16-acre site is also steadily growing into a prime camping ground for grey nomads, and people of any age, who are planning a trip to the Central West."

Mr Gee's announcement coincided with regional travel restrictions being lifted on fully vaccinated Greater Sydney residents this week.

From Monday, November 1, anyone from Sydney who has received both doses of a COVID vaccine can travel to the Orange region and country NSW.

With the new rules, Mr Gee was expecting Sydneysiders to be "making a beeline for the bush".

"This latest funding announcement will help the community of Spring Hill get ready for the upcoming domestic tourism rush," he said.

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