The Australian and Aboriginal flags are flying from The Exchange Clock Tower to "celebrate our culture in Dubbo".
The additions were installed as the heritage building's new look was unveiled this month.
The main street property, often known as the former post office, is undergoing an extensive renovation, led by new owner Jillian Kilby.
Fascinated by the history of the 19th century property, Ms Kilby said it was important to bring back its flag poles and "display our Aussie icons".
"The flagpoles have always been there and when you look back through history, there's a great photo of the soldiers marching past and the Australian flag is hanging from the building," she said.
The Dubbo-based engineer noted 15 per cent of the city's population was indigenous, while Coonamble and Walgett, where she had previously lived, also had indigenous populations of 34 per cent and 29 per cent respectively.
"I feel pride when I see the two flags side by side on the harbour bridge - it's important we celebrate our culture in Dubbo," she said.
"That's why we chose to display both."
Time in the United States was also influential.
"I've spent five years in America from 2013 and they are so patriotic, everywhere you go you can see the flag and it was a pretty good moment... pulling those flags out," Ms Kilby said.
"I guess they're like the old girl's earrings."
Ms Kilby thanked federal member for Parkes Mark Coulton for supplying the flags.