The $4.87 million project will include sealing, rehabilitation and drainage work along various lengths of Campbells River Road.

The money is coming from the Australian and NSW governments as part of a new stimulus package to boost local roads and create regional jobs.

The Australian Government has committed $191 million to build on the NSW Government's $500 million Fixing Local Roads program.

Oberon's federal member Andrew Gee said the funding will "ensure that essential, shovel-ready projects can get moving as soon as possible, while increasing job opportunities for local tradies".

"Country roads are often riddled with potholes and require ongoing maintenance. This funding will not only improve road safety for locals, but also for those travelling to and from the area," he said.

Oberon's state member Paul Toole, who is the NSW Minister for Regional Transport and Roads, said the NSW Government wanted to get projects to seal, maintain and repair local roads under way faster.

"This is about delivering small projects that can make a big difference for local communities," he said.

Mr Toole said round one of the program would see more than $250 million invested in 258 projects across 83 local government areas, including Oberon.

"This is about delivering smoother, safer trips along the roads our community use every day - roads like Campbells River Road," he said.

Projects will need to be delivered within two years of receiving funding.

This latest funding announcement follows Oberon Council receiving $580,000 from the Australian Government for community infrastructure to boost the local economy after the impacts caused by the coronavirus restrictions.