The funding, provided by the state government's Start Strong Capital Works Grants Program, will also allow Yalbillinga to take on 15 more preschoolers.

Julie Kemp from Yalbillinga said the new building will house the preschool class and the expansion has been years in the making.

"I'm ecstatic, you've got no idea how excited I am," she said.

"We've been trying to get another preschool up and going for quite a few years now."

Julie and team member Natalie Collett said they use another demountable building on the site for the preschoolers, however this space is also used by various groups and organisations such as TAFE.

"Sometimes it can be disruptive and we have to work around everyone else cause we have quite a few other organisations that use the room," she said.

In light of this, Trilby Ryan, who's children attend the day care, applied for the funding for a demountable classroom.

Member for Cootamundra, Steph Cooke, who was on hand to present the team with a cheque on Wednesday, said Yalbillinga was the only preschool in the electorate to receive funding under this round of the Strong Start program.

"I'm excited and I'm also relieved because this has been on the wishlist for this daycare and preschool centre for a long time," she said.

"Yalbillinga does a wonderful job and this has been a long time coming and I can't wait to see it come to life."

Ms Cooke said the new addition will help ease constraints on the centre.

"Having their own dedicated space, being able to set up their systems and processes exactly the way they want... will be of benefit from a couple of perspectives as I would observe," she said.

"There will be peace of mind that they will be able to just pick up from where they left off, there will be great continuity for the children and that familiarity.

"It will provide that consistency, that certainty for both the kids and the staff.

"These kids are going to be able to get off to the best start to their educational journey possible."