The head of a car dealership at Dubbo says a $4.17 million expansion of the business is a "show of confidence" in the city despite the drought biting.
Construction has started on a building next to Western Plains Automotive to give it more space and more capacity.
Dealer principal Grant Spencer said the business was committed to the project, which would give its employees and the wider city a boost.
The boss of the dealership of four franchises for the past two years, he said Dubbo served and supplied the western area.
"It's tough at the moment, we're in the worst drought I think in history," he said.
"Particularly in the western division, I'm from Bourke originally... although I've had 25 years in Orange, I'm still pretty close to Bourke and my family is still in Bourke.
"So I'm very much aware of what happens out west and we rely so much on not just the people of Dubbo, but the people in that western division, and that broader western division that rely on coming to Dubbo to purchase their vehicles and every other thing."
A 7000-square-metre parcel of land is being developed, with a new service building containing 18 bays, up from the business's original nine.
"For us to continue to build this project, which has been in the making for the past probably four years, I think is a pretty good commitment that we think the town is solid," Mr Spencer said.
"I think it's a show of confidence by not holding off, it would be easy to hold off, ... and say we'll build this facility when things improve in a couple of years, but that doesn't help anybody.
"We really need just to get on with it, and give the town and give our employees as well a boost, because it's been a long time coming and it wouldn't be fair to anyone if we were to halt."
Structor Projects, a builder specialising in motor dealerships, has been engaged to construct the new facility.
Mr Spencer said they were also using as many local tradespeople and suppliers as they could.
The plumbing, electricity and underground cables were all completed and the slab was down.
"When you walk over and have a look now, you really get a feel for how big the facility's going to be," Mr Spencer said.
"The driveways go in shortly as well and then will start commencing the tilt panels in the next couple of weeks."
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