The community currently has no place of worship and is using a hall they spend hours preparing and taking down every two weeks.

The absence of a place of worship is the "number one" reason why Sikhs don't settle permanently in the region, Dubbo Sikh Association president Sandeep Singh Garcha said.

"It's hard because we all [would like] to go to a Sikh temple, it doesn't matter if it's once a week or once a day," Mr Garcha said.

Mr Saunders said he had visited Sikh temples in other communities that were "incredibly impressive".

"While I'm not suggesting we would end up with one of them in the near future because that would require a fair bit of investment, it is something we should look into," he said.

"I'm not sure exactly of what funding opportunities might be available in that multicultural space, but I'll certainly be putting forward some ideas to the Premier's office around the possible funding of this."

India is the top country of birth for people living in the Dubbo postcode, overtaking England, in the latest Census.

Mr Saunders said due to these statistics it would be great to be able to "support" the community in any way they could.

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"They're another really important part of our community...so it is a good idea to look for a permanent building that's already in existence or to look at constructing something," he said.

For now, the community of about 150 people meet at Wesley Hall on Carrington Avenue every fortnight.

Mr Saunders said he "completely understood" why the Sikh community would prefer a more permanent location.

"Wesley Hall is great for a lot of different multicultural groups but when you have a lot of things you need to set up it does become quite difficult," he said.

Mr Saunders said he thought most people in the region would welcome the idea that the Sikh community members could practice their religion in their own space.

"I think most people would support that, I can't see that it would be an issue of any kind, and certainly as the local member, I'm really more than happy to try and help find either a building temporarily or for a longer term solution," he said.

"So, let's see what we can find out and aim to find some solutions as quickly as possible."

Mr Saunders isn't the only politician who is ready to support the Sikh community - Parkes Federal Member Mark Coulton has also thrown his support behind the idea of a permanent location for the community.

Mr Coulton said he recognises the increasing diversity of Dubbo's population, especially the rising numbers of new residents from the Indian subcontinent.

"A significant percentage of Dubbo's population has now been born overseas, and with this rise in cultural diversity we can expect to see a greater diversity in religious faith as well," he said.

"While the Federal Government does not to my knowledge provide funding for construction of religious buildings, funding is currently provided for security purposes to ensure people are safe to practice their religion."

Mr Coulton said the $50 million provided through the Securing Faith-based Places funding is the Australian Government's response to the need to keep Australians practicing their religion safe across the country.

"While there is not a dedicated funding pool available for building temples on a Federal level, I would be happy to see a Sikh Temple built in Dubbo, and am supportive of this aim," Mr Coulton said.

"The richness and vibrancy that people from other cultures bring to rural and regional Australia is a wonderful thing, and I'm pleased to see a growing multicultural presence in towns like Dubbo."

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