The facility will provide programs and activities to address youth issues such as self-esteem, resilience, work-readiness, internet safety and anti-bullying.

Money has been provided through the NSW Government's Stronger Country Communities Fund.

"The aim of the Oberon Christian Life Centre is to build a facility for young people to address social isolation and transport disadvantage," Mr Toole said.

"It will be well insulated and heated to cater for the alpine climate that Oberon experiences and provide a safe place of belonging, inclusion, acceptance and a listening ear for those who may need it."

Mr Toole said pastor Jo Korman and the team from the Oberon Christian Life Centre were elated to be informed of the good news.

"The new facility will be staffed by Working With Children checked qualified staff and volunteers," he said.

"They will be able to provide programs and activities to address youth-related issues such as self-esteem, resilience, work-readiness, internet safety and anti-bullying. There is also the opportunity for the Oberon Christian Life Centre to network with other organisations and provide referrals to other agencies and services as the need arises."

Mr Toole said the Oberon Life Community Hall will be built on land virtually opposite the organisation's present place of worship in Dudley Street.

He said this announcement follows the recent news of State Government funding for Oberon Council with a grant of $3 million from its Drought Stimulus Package to allow the expansion and redevelopment of the local library in Fleming Street into a community hub.

Works will feature a precinct with function, meeting and exhibition spaces as well as an area dedicated to youth. The new, digitally-connected community hub will be a vibrant setting in which locals can read books, write and enjoy art or use high-speed internet to study or facilitate business meetings.

It also means youth won't have to move away to further their education.