A new 12-stable complex will be built at Dubbo Turf Club.
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Dubbo Regional Council has entered into an agreement with the club to loan it $190,550.
The money will be spent to replace the old stable facility, which Dubbo Turf Club general manager Vince Gordon said he believed was built in the 1950s.
It would allow the club to build on the momentum it had gained in recent years among the Dubbo community and in the racing industry, Mr Gordon said
Mr Gordon said the work would ensure the city continued to have one of the key racing clubs in country NSW. Dubbo was already ranked third in country NSW for trainer starters, he said.
The loan will be repaid by the Dubbo Turf Club across the next five years at an interest rate of 3.03 per cent.