The NSW government's Stronger Country Communities Program will provide Brocklehurst a new green space and recreational area.
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The government is providing $80,000 for the project, which will see a playground, irrigation system and turf installed in the village.
Dubbo Regional Council will invest another $120,000 to complete the project.
Member for Dubbo Dugald Saunders said the decision was made because the village, north of Dubbo, does not currently have any designated areas set aside for recreational or social gatherings.
"This playground and recreation area project will provide a meeting space for the community, and as well as having the playground there will also be turf and irrigation installed that will provide a green space for other activities," he said.
Dubbo Regional Council mayor Ben Shields said he is delighted with the funding.
"It's with great excitement I welcome this funding to construct a play space for the village of Brocklehurst," Cr Shields said.
"The village is currently without a play space so this is going to be a great addition.
"We will now seek suitable designs for the identified area before commencing a community consultation process to find the most appropriate and inclusive play space for the people of Brocklehurst,"
