The 150-seat Waterhole Cafe will replace the Midway Kiosk near the former lion exhibit. It will provide panoramic views, have an over-water deck and be situated next to new meerkat and star tortoise exhibits.

Taronga Western Plains Zoo director Steve Hinks said there would also be a water play area, designed to look like an African waterhole.

"We're really trying to tell the story for the water cycle and the droughts and floods that occur through the water courses throughout Africa, which is the native habitat for the vast majority of our animals here at the zoo," Mr Hinks said. 

"The waterholes are an essential area where most of the species come together. In a similar vein that's what we're doing with our guests by bringing them around the waterhole."

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The building will also rely on non-mechanical systems for heating and cooling.

"This is an ambition project and it will be a one-of-a-kind building, something that's never been seen before in regional NSW," Mr Hinks said.

While there had been many, many drinks and icecreams sold at the mid-way cafe, Mr Hinks said it was time to take the zoo's offerings to the next level.

"Modern zoos are far more than simply exhibiting animals. Modern zoos need to provide an environment where we're transporting guests into the social and the environmental situations that the animals live in and it's really telling that story on a deeper level," Mr Hinks said.

"This project, like the lion project, is about educating our guests on what life may be like in an African setting."

The project is funded by the Taronga Western Plains Zoo and the NSW government.

As well as bringing tourists to the zoo, Dubbo MP Troy Grant said it would also give the local community a greater offering.

"If you came and visited the zoo in the 70s when it opened it was special because it was unique then, but it became a bit aged and it took a long time to get in rejuvenated. Over the last eight years, the zoo and the team here have delivered in spades," Mr Grant said.

The MP said he couldn't wait to see it all and as a pie connoisseur he hoped they would be on offer at the new cafe.

Work on the Waterhole Cafe will be undertaken by David Payne Constructions. It will begin in March and is expected to take 12 months to complete. The Midway Kiosk will still be open while the work is completed.

The new cafe is part of a five year masterplan for the zoo's redevelopment.