Deputy Prime Minister Michael McCormack has welcomed the symbolic start of work on the new aquatic, arts and leisure precinct at Mackay Park.
The first sod was turned on the Batemans Bay site on Friday, September 25, where a 25-metre indoor pool, cultural centre and 350-seat auditorium will be constructed.
The Deputy PM and Infrastructure, Transport and Regional Development Minister said it was a boost for the region.
"Quality sports and cultural facilities are so important for our regional towns because sporting clubs get a boost, major events can be held, the community has a place to gather and jobs are created," Mr McCormack said.
The project will be funded with federal, state and local government funds.
"The Australian Government's $100 billion, 10-year infrastructure pipeline is supporting local communities at a time it's needed most," Mr McCormack said.
The 25-metre indoor heated pool will replace Batemans Bay's outdoor 50m pool.
READ MORE: Watch video walk through of new centre
Bega MP Andrew Constance said it would "be a free-form leisure pool that will be great for aqua-aerobic participants and other groups who need to train all year round".
"This facility will also cater for those in our region with disabilities and offer warm water therapy options for those rehabilitating from injury or who are post-operative."
The complex would include a learn-to-swim area, a water play splash pad, waterslides, gymnasium and fitness area.
The arts wing would include gallery and exhibition space, dance studio, music room, wet and dry workshop spaces and other multi-purpose spaces.
Senator for NSW Hollie Hughes said the Australian Government's $25 million investment would boost the regional economy during COVID-19 and the arts would thrive.
"Attracting professional and amateur sporting events, the new precinct will be an economic game changer for Batemans Bay, with this upgrade making it the pride of the region," Senator Hughes said.
Eurobodalla Shire Mayor Liz Innes said the economic boost was needed.
"Following the impacts of the bushfires, projects like this give us hope - they show us we have confidence to invest in our future and the future of our children," Cr Innes said.
The tender in August was granted to ADCO Constructions and the centre is due to be completed by February 2022.
The Australian Government allocated funds under the $272.2 million Regional Growth Fund.
The NSW Government contributed $26 million and the Eurobodalla Shire Council $18 million.