Mrs Diffey was presented the award by state Minister for Women Pru Goward at the Western Plains Cultural Centre on Monday.

Dubbo MP Troy had nominated Mrs Diffey for the award and said she was a true inspiration.

"[Women like Jane] never seek adulation or recognition or any credit for the enormous work that they do in our community," Mr Grant said.

"Someone...who is selfless and thinks about community first, second and third and is not all about talk but actually walks the walk.

"Your dedication to this community is enormous."

Mrs Diffey's daughter Clare was diagnosed with a rare neurological disease - Rett Syndrome - at just 18 months old, and unexpectedly passed away in 2014.

In the past three years Mrs Diffey has raised $100,000 for Rett Syndrome research and, in 2015, successfully lobbied the NSW government to build a special needs school in Dubbo.

She also serves on the Dubbo Show Society committee and the Dubbo and District Preschool board and organises the Dubbo Showgirl competition and Clare's Angels ball.

"I just do what I do because I feel that it needs to be done," Mrs Diffey said.

Mr Grant said regional communities like Dubbo would "contract and die" without women like Jane Diffey.

"They're vital. Without Jane Diffeys the communities...have less services, they have less community spirit, they just contract and ultimately die," Mr Grant.

"There's lots of Jane Diffeys in our community...and this is one of those opportunities we get to recognise that."

Mrs Diffey said she felt extremely honoured and humbled to receive the award.

"All the awards in the world won't change anything for me. It was Clare that started it all for me and I'm just so proud," she said.

Mrs Diffey has been invited to join Mr Grant at the 2016 NSW Women of the Year award ceremony to be held at Parliament House in March.