Locals will soon be able to take a leisurely stroll or bike ride on a shared pathway from Picton to Tahmoor and back.
Wollondilly Council has secured funding under the Resource for Regions program which will be used to construct the first stage of the shared cycleway and footpath between the two town centres.
Wollondilly mayor Robert Khan welcomed the $2.163 million in funding for construction of the shareway.
He said the path would form a valuable pedestrian and cycling link between the two towns and also provide a great incentive for locals to get active.
"Council has been pushing for many years to get this project constructed and we appreciate this partnership with the NSW Government thanks to funding made available through the Resources for Regions program so we can now provide this much needed shareway for our residents," he said.
"I'd like to thank our local member Nathaniel Smith and the NSW Government for supporting this important community project."
Wollondilly MP Nathaniel Smith said the project was a great example of the projects being funded by Resources for Regions round seven, taking the total number of projects supported by the program across regional NSW to 149 since 2012.
Deputy Premier John Barilaro said the Resources for Regions program would generate job opportunities, stimulate economic growth, deliver lifestyle improvements and boost wellbeing in mining towns.
"Mining communities and organisations told us how Resources for Regions could be improved and I took action. Now the revised program is funding a broader range of projects and delivering guaranteed and fairer shares of funding," Mr Barilaro said.
"I thank Wollondilly council for putting forward these strong projects on behalf of their community and look forward to seeing the benefits that it will deliver."
Wollondilly councillor Matthew Deeth told the Advertiser last year that the pathway was great news for pedestrians and cyclists.
"Creating a pedestrian link between Tahmoor and Picton High is something that council has had on our agenda for many years, and now we finally have the funding to start working on it," he said.
"There are some challenging site conditions on this section of road and the funding will allow us to carry out a full investigation and prepare a detailed design to address these constraints."
The first stage of the pathway is between River Road, Tahmoor and Wonga Road, Picton - near Picton High School.
There is no timeline for the completion of the entire track.