The plan has been created in conjunction with Charles Sturt, Dubbo Regional Council and the Western NSW Local Health District.

It aims to connect key organisations in the area through infrastructure and activity centres that will serve to support and connect people in the region.

"By developing this plan for the precinct, the community will have better access to the services they need in a central location, making it easier to obtain the best care and health education available to us," Cr Shields said.

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"Healthcare and social assistance is Dubbo's largest employer at 16.6 per cent, with the sector growing by 39 per cent from 2006 to 2016. This new precinct will not only increase the healthcare on offer to the community, but increase the employment opportunities in our region as well."

The masterplan also includes an increase in residential housing, focused on supporting short-term accommodation for those travelling for their health.

"The inclusion of short-term accommodation within the precinct will lessen the burden of those receiving treatment and also provide a reliable place to stay for those who are studying to become the health providers of tomorrow," Cr Shields said.

The Health Education and Wellbeing Precinct Masterplan will be on public exhibition until October 16 on council's website, and in the administration buildings.