The NSW government is contributing $2.9 million to social housing in the small town while also partnering with Orana Support Service to deliver 16 new homes under the Community Housing Innovation Fund (CHIF).

Orana Support Service CEO Tina Reynolds said the Narromine social housing project was a substantial step in providing secure accommodation to vulnerable members of the community.

"Orana Support Service has been providing effective services to people experiencing homelessness and those at risk of homelessness for over two decades," she said.

"This project will help address the housing situation in the Narromine region and support our Aboriginal clients into new homes."

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Member for Dubbo Dugald Saunders said the project would provide a lot of opportunities to people in and around Narromine.

"The project is close to shops, services and employment opportunities and will create jobs for local trades and construction workers," he said.

"It's a perfect example of how we're working with community housing providers, like Orana Support Service, to help break the cycle of homelessness and change lives for the better."

The NSW government is contributing $2.9 million to the project as part of the $50 million expansion of the CHIF.

Minister for Families, Communities and Disability Services Alister Henskens said the project in Narromine was one of 14 being funded under the latest round of the CHIF.

"This program is unlocking new and exciting development opportunities by partnering with the community housing sector, adding to the strong pipeline of new housing being delivered to support vulnerable people," he said.

The CHIF is a $150 million program delivering more social and affordable housing in partnership with community housing providers.

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