The Gulargambone Community Enterprises Co-operative has received more than $71,000 in federal government grants for the fourth annual Pave the Way to Gular festival.

Each year, artists from all over the country travel to Gulargambone for the festival to splash colour around the town on buildings, water towers and footpaths. However after three festivals all practical sites for large murals in the town have been exhausted.

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The funding will be used to construct three billboard-sized panels in the Jean Walker Park, adding another six surfaces for invited street artists to paint murals relating to the theme of the 2022 festival. It will also be used to fund the artists.

Parkes MP, Mark Coulton said he was pleased to support the popular street art festival, which has helped transform the town since it began in 2018.

"It will not only bring the community together and inject some much-needed tourism dollars into the Gulargambone economy during the 2022 festival, but it will further cement the town as a mural mecca, helping to attract visitors year-round."

Gulargambone Community Enterprises Co-operative Director Annie Haling said a path meandering around the billboards would also be constructed, budget permitting.

"It's a great opportunity to show the community and audience how much public art can contribute to an area, both economically and socially," she said.

Ms Haling said the festival will run on September 10 and 11 next year, and would provide 13 artistic job opportunities for artists to display their skills, provide a unique experience and contribute to the town's economy.