Rydal Showground will undergo improvements after grant funding was announced this week.
Its wool pavilion will be upgraded with a grant of $62,112 from the NSW Government Crown Reserves Improvement Fund.
"Regional NSW is in the grip of the worst drought on record. It's important that each of our regional towns have places to come together as a community which is why we are investing in upgrades to facilities such as the wool pavilion at Rydal Showground," Bathurst MP Paul Toole said.
"Crown land covers 42 per cent of the state and is designed to be used by the people of NSW and support organisations that are the lifeblood of our communities."
Mr Toole said the wool pavilion project will see it upgraded to become a multi-function building that meets the current building requirements and heritage guidelines.