Dubbo MP Dawn Fardell said she couldn't be happier with the result.

"For the total net proceeds from the sale to be allocated to priority works - it's just tremendous," Ms Fardell said.

"It's like winning the lotto," she said.

However, this is also likely to spell the end of Dubbo's second hydrotherapy pool for good.

When the sale of the pool became imminent Ms Fardell joined with community members to lobby the education department for funds

from the sale of the site which included the now decaying hydrotherapy pool.

The pool, built for the benefit of disabled children attending Fairview Heights School but also used as a community facility, was built with over $150,000 worth of funds from community donations.

The site will now go to auction on March 8 with at least 30 prospective buyers already showing an interest in the 2.7-hectare site.

Local property experts expect the land to fetch in excess of half a million dollars.

President of the Hydrotherapy Pool Association and Dubbo City Councillor Richard Mutton would like to see the money from the sale go back into a hydrotherapy pool for Dubbo.

"If they are going to get all the money from the sale of the pool then that should go towards a hydrotherapy pool that will benefit disabled children with water-based therapy," Cr Mutton said.

"Anything else would be morally reprehensible," he said.

Ms Fardell said she was aware some people would be unhappy the sale of the land was not going to guarantee a new hydrotherapy pool for Dubbo.

"But I have also spoken to Lourdes Hospital and they have assured me their pool repairs are proceeding and they have ample room for more people to use their facility - which made the decision about where the money should go a lot easier," Ms Fardell said.

"I've identified a long time ago that school is the key to our children's future and this is not taking the place of other funding but going into special projects that the schools want to see happen," she said.

"What's more, it's wonderful to see the total money go to Dubbo and not swallowed by the State budget."

A spokesman for education

minister Carmel Tebbutt said they would identify the priority works after the auction revealed how much money they would be able to spend in Dubbo.

He also said the education department would not reveal how much they wanted to get from the sale because they did not want to jeopardise the auction process.

On Monday night Dubbo City Council will discuss the sale of the Fairview Heights site with some councillors likely to argue that council make a bid on the land.