Member for Cootamundra Steph Cooke announced a $100,000 grant on Thursday to install a floating jetty at Wyangala Waters Inland Holiday Park.
The jetty grant is part of $17 million in funding under round two of the NSW Government's Boating Now program.
Ms Cooke said the jetty would enable boat users to tie up their boats regardless of how full Wyangala Dam is.
"This 100-metre jetty will provide boat users with a location to tie up their vessels which will be accessible regardless of dam water levels," she said.
"It will provide year-round useability and enable people to make the most of this wonderful lake.
"In NSW, we have some of the finest waterways and each year more than two million people head out on the water on boats or other watercraft to enjoy the sun, catch a few fish or to spend time with family and friends," Ms Cooke said.
"The NSW Government is delivering these projects by the end of 2019 in partnership with local councils and other partners, to make water activities safer, easily accessible and more enjoyable.
"Boating Now is a $70 million five-year program, on top of a $26 million contribution by local councils and other delivery partners, to deliver vital boating infrastructure across the state."
Ms Cooke said this was the second round of funding under the Boating Now program, with the floating jetty at Wyangala Dam among 73 other successful applications across the state.
"Boating is a key driver of tourism, right up and down the coast and at popular inland waterways, which is where many of the 73 new projects are located," Ms Cooke said.