The centre, funded by the NSW Government, is set to provide a home for the NSW Rural Fire Service (RFS) day-to-day operations in the Mid-Western Region as well as function as a multi-agency operations hub when needed during natural disasters like fire and flood.

Member for the Dubbo electorate Dugald Saunders said the project is important for the region.

"Communities in the Cudgegong RFS District have been devastated by back-to-back fires and floods in recent years, which is why it's so important for this hub to be built," Mr Saunders said.

"Having the Fire Control and Emergency Operations Centre co-located will provide our local RFS volunteers and staff with the very best facilities for year-round operations, and ample room for additional personnel deployed to assist our local communities when major events occur."

Minister for Emergency Services and Resilience and Minister for Flood Recovery Steph Cooke said the state-of-the-art facility will help emergency services volunteers and staff respond to a range of hazards rapidly and effectively.

"We are investing $71 million in eight new Fire Control Centres in high fire risk areas across the State including Armidale, the Clarence Valley, Cooma, Hawkesbury, Moruya, Narrabri, Tumut and here in the Mudgee region," Ms Cooke said.

RFS Deputy Commissioner Peter McKechnie said construction is expected to take one year.