On Thursday, Dubbo Regional Council launched its nation-wide competition for an artist to complete a 513 square-metre piece on the side of the Telstra building.

It's part of a major plan for the Old Dubbo Gaol plaza that would open up the space and encourage increased CBD visitation.

The top three artists will receive $5000 to develop their concept. The winner will then get $10,000 to develop the design, a $55,000 artist fee and $20,000 prize money.

The theme of the artwork will be Community, Country, Connection: finding common ground.

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Council's cultural development coordinator Jessica Moore said the artwork would be made up of thousands of small plates that would subtly move in the wind, adding innovation and energy to the piece.

"We're looking for artists to really embrace that opportunity so think about when you're designing what you would like to go there, how would you make the best use of the opportunity? How would you make something that can move and shimmer and grab the eye?,' Ms Moore said.

"That's the thing that will hopefully provide inspiration for artists to really push the boundaries."

The artwork will be on the facade of the telecommunications exchange owned by Telstra. It will overlook the General Post Office, goal and the new precinct which will be developed.

While it's open nationally, Ms Moore said she really encouraged Dubbo artists to submit an idea.

"We would absolutely love it to be a local artist but we want this to be nationally important so we wanted to open it up to a national pool of artists," she said.

Overall, the cultural development officer said public art was underestimated.

"People really think of it as something you walk past every day and you really don't notice as much. But what it does is very subtly give our communities and our cities meaning and value - the things we put on display are the things we celebrate," Ms Moore said.

"So it's really important for us as a community to be bold with that and to really be public with what the Dubbo region values. We value community, we value connection, we value acknowledging heritage and future and this artwork will say all of that for us in a really bold, dramatic way."

Expression of interest forms on the council website. They can be submitted until January 21

The judging panel includes mayor Ben Shields, Ms Moore, Dubbo MP Dugald Saunders, as well as representatives from Art Gallery of NSW and Public Art Advisory Panel, Telstra, the Dubbo Aboriginal Working Party and Wiradjuri Technical Advisory Panel.

By April, Ms Moore expects construction to have started on the piece.

It should be completed in early 2022.

"As someone who works in the arts in Dubbo, this is what you work for. I would love to see more like this," she said.

The artwork is part of the $13 million Destination Dubbo: International Ready project, funded mostly by the NSW government with an almost $1 million contribution from council.

The development of the area hopes to reclaim the original footprint of the Old Dubbo Gaol while celebrating the city's Indigenous and colonial history.

The Destination Dubbo project also includes the establishment of the Dubbo Wiradjuri Tourism Centre near and the Macquarie River Foreshore Event Precinct, which will include a boardwalk along the river.