Membber for Dubbo and fund chairperson Troy Grant and  Member for Barwon, Minister for Western NSW Kevin Humphries announced the funding on Thursday morning in Dunedoo. 

The Three Rivers Regional Retirement Community, which is receiving $4.5 million, will provide an option for older residents of Dunedoo to remain in the area, meeting a local shortfall in aged care accommodation.

The revitalisation project, receiving $1.846 million, includes a number of important initiatives, including improvements to a heavy vehicle parking area, revitalisation of Milling Park and creation of an RV parking area to encourage more visitors to stop in the town.

Mr Grant said the fund's aim is to drive economic growth and productivity in the region. 

“It recognises the impact that land acquisition and other activities associated with the Cobbora Coal Project have had on local communities – and there is no doubt Dunedoo has been impacted.

“The assessment process for the Fund took into account extensive community input received via feedback forms online and at local libraries, as well as at a community forum held in Dunedoo late last year.”

The $20 million Cobbora Transition Fund has been allocated in two ways - $16 million through an expressions of interest process, and the remainder allocated directly to each of the four Councils, with $1 million to each Council.

The $16 million will kick-start 12 infrastructure projects across the region worth more than $21 million.

The full list of the successful projects will be announced on Friday in Dubbo.