The campaign aims to support local businesses owners recovering from the COIVD-19 pandemic.

According to council, total spending in Dubbo was down more than 42 per cent in recent months, including a 30 per cent reduction in residents' spending.

However, there's been almost a 50 per cent increase in residents' online shopping.

"We've seen significant decline in spending off the back of this last COVID-19 pandemic lockdown," council's director culture and economy Natasha Comber said.

ALSO MAKING NEWS:

"It's programs like [Shop Local], in collaboration with business chambers in Dubbo and Wellington that help drive foot traffic and is one element of how we respond to these economic impacts resulting from COVID-19."

As part of the campaign, residents who spend $20 or more at participating businesses can go int he draw to win a share of more than $2000 in myDubbo Region shopping cards.

The cards, which are an EFTPOS-based gift card, are redeemable at more than 150 stores across Dubbo, Wellington and surrounding villages.

Entry forms can be filled out in store or dropped off at one of the region's Visitor Information Centres.

Wellington café Four Cats Coffee is one of the participating businesses. Owner Kylie Barton has welcomed the initiative to encourage local spending.

"We have some incredibly supportive residents and I encourage everyone to get on board with this campaign," Ms Barton said.

"I have loved seeing all our locals back drinking their favourite coffee, and especially seeing our new indoor seating area being enjoyed by friends reconnecting after lockdown."

Dave Hughes from Mass Nutrition in Dubbo has also praised the campaign.

"The Shop Local promotion for Dubbo has come at a great time as we all look to recover from the quieter months that have seen a decline in foot traffic and sales due to the pandemic," he said.

"Keeping the business local and in the community is more vital than ever, and as we head into Christmas the timing is perfect."

The competition runs through to December 19 and prizes will be drawn on December 20.

The full list of participating stores can be found at dubbo.com.au/shop.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: