With the creation of around 300 jobs the facility will be a boost for employment rates in the city.

Initial work includes clearing the site, erosion and sediment control as well as drainage and flood control work.

Major construction work is expected to begin later this year.

Momentum Trains won the contract to design, build and maintain the $2.8 billion project with the fleet replacing the current XPT, XPLORER and Endeavour trains.

Member for the Dubbo electorate Dugald Saunders said the project would also see the the project will also see the straightening and repositioning of the Main Western Line to the north of the site, with three tracks built within the main facility building for train maintenance, and three outside of it.

"The maintenance facility will function sustainably, with at least 95 per cent of its low voltage energy to be supplied from on-site solar technology. The facility will also make use of recycled water where possible."

In announcing the contract early last year Transport and Infrastructure Minister Andrew Constance said the facility would have 200 jobs during construction, 50 full-time maintenance jobs and 60 associated with the final fit out of the trains.

"We're going to take the maintenance of country trains out of the city and put the jobs where they belong, in the country, where these trains are going to be maintained," Mr Constance said at the time.

Minister for Regional Transport and Roads Paul Toole said the maintenance facility is key to the NSW Government's $1.26 billion investment in a modern new fleet that would transform regional rail travel.

"We are forging ahead with the vital infrastructure projects that will help us stimulate regional economies and improve transport connectivity in the bush," Mr Toole said.

Dubbo was identified as the preferred location for the new maintenance facility back in 2017.

Mr Saunders said the fleet would start rolling out from 2023.

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