The way is clear for Portland's skate park to be removed and a new facility built at Kremer Park, after the approval of a development application for the project.
The existing skate ramp, jump and concrete area will be replaced with new rails, pipes and jumps over an area of about 500 square metres.
It gained unanimous support from councillors.
Cr Maree Statham said it was excellent news five years in the making.
"I think it's something great for the town of Portland," she said.
Cr Joe Smith said it was a welcome development for young people.
"I know there are kids in Portland waiting for this with baited breath, as are the kids in Wallerawang are," he said.
The two projects attracted a combined $400,000 in State Government grants, with another $200,000 to come from Lithgow City Council coffers.
The skate parks will be built in their current locations at Tweedie Street in Wallerawang and on Kremer Park in Portland.