Dubbo Regional Council has been liaising with Crown Lands and NSW Local Land Services to acquire the land so the bridge can be reconstructed. The bridge is located between Terrabella and Benolong roads.

In April, the NSW government announced $2.7 million for the council to replace the bridge. The federal government had already allocated $700,000 towards it.

At the time, Mr Saunders said the project would improve freight connectivity, particularly for farmers and stock producers in the area.

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"For a long time now producers have been calling for a B-Double rated bridge in this area and I am delighted to be making this a reality," he said.

"This project will deliver important benefits for all road users - from passengers to producers and from heavy truck drivers to the local school bus."

Both Crown Lands and the LLS have given their support for council's land acquisition.

The reconstruction has been a long time coming.

In a report on the acquisition, council's property development officer Alex Noad said the bridge, approach roads and intersection had been identified by the former Wellington Shire and Dubbo City councils as "unsafe and requiring reconstruction".

The reconstruction would provide a much safer and less flood-affected route for vehicles travelling between Geurie and Obley Road, Mr Noad said.

Dubbo mayor Ben Shields said he knew a lot of residents who were going to be "very, very happy" about getting the work at Terrabella bridge under way.

"This Terrabella bridge should have been done decades ago," Cr Shields said.

"On this occasion I'll certainly give praise where praise is due and that's the state government coming to the party on this one and putting their money towards it."

The Terrabella bridge is currently a narrow one-lane bridge on Terrabella Road, which will be replaced as part of an improved road alignment.