The important diagnostic tool was mentioned on Wednesday after Member for the Dubbo electorate Dugald Saunders and NSW Health Minister Brad Hazzard announced Lipman Pty Ltd had been awarded the contract to build the $35 million centre on the grounds of Dubbo Hospital.

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The hospital's medical oncologist Dr Florian Honeyball later advised that the PET CT scanner would draw people to the city from across the Western NSW Local Health District.

"..further east and south of us, residents of communities such as Bathurst and Orange will benefit from travelling within their local health district to have a PET CT scan without having to battle with the big metropolis of Sydney," he said.

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Mr Saunders said the new facility would be the "most up-to-date and modern treatment centre in central or western NSW".

"We''ll have the technology here that is the same as in any city hospital or cancer centre," he said.

"Having world-class cancer facilities in Dubbo will help attract and retain health professionals, and will be life-changing for patients living from Bourke to Mudgee."

Mr Hazzard said the centre would provide patients "here in the west with advanced diagnostic services and life-saving treatment closer to home".

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The state government put up $10 million for the construction of the facility after $25 million was secured from the federal government by Member for Parkes Mark Coulton.

"The Western Cancer Centre is a project we can all be extremely proud of and it promises far-reaching benefits for Dubbo and Western NSW," he said.