The NSW government has allocated $400 million over the next four years to develop a 'data hub' in Dubbo.
A data hub is a way of improving the back-haul from Sydney to regional NSW areas like Dubbo and seeks to improve internet connectivity throughout the regions.
Nationals Member for the Dubbo electorate Dugald Saunders said the Connect Regional NSW program would revolutionise the way we live in the regional areas.
But the significant investment from the NSW Nationals and Liberals is not an admission the federal government has dropped the ball in regards to the NBN and internet service in the bush Mr Saunders said.
"The state government decided before the last election that the feds weren't able to get enough done quickly enough, hence coming on-board and committing $400 million to data and mobile black spots itself," he said.
"Our investment will compliment what the federal government does, and the point is to make sure we get better data and better internet in the regions.
"The NBN is working for certain people in certain circumstances, what a data hub can do is provide data further afield and via different ways, whether that is by 5G or fixed wireless connections and this will provide an instant upgrade of the internet once it is in place."
Mr Saunders said the data hub and The Connect Regional NSW program would help those in Dubbo city but would also enhance competitiveness and productivity for the farming industry.
"Technical studies and stakeholder engagement are already underway and the work done here will help shape the digital future for the rest of regional NSW," he said.
However, the Dubbo MP could not give a solid timeline for delivery of better connectivity for Dubbo but made assurances it would happen.
"The work will start now, to design it will probably take the rest of this year," he said.
"We will get an update, and we will know more once the technical team has finished their surveying of what needs to happen and then there will be a mapping out of how the project will roll out.
"It may end up that this ends up being a lot easier than first thought, it may end up being a bit harder, so technical assessment needs to be done properly before the decision is made and a timeline set-out and I think that is fair enough.
"But the main thing is Dubbo is the number one choice along with Wagga Wagga to investigate how we can deliver better connectivity, which is exciting for the entire Dubbo region."
The Connect Regional NSW program is funded by the $4.2 billion Snowy Hydro Legacy Fund.