"I'm extremely proud of our yarning circle, which was made possible by a successful application as part of the Sustaintable Schools grant program," Gooloogong principal Nick Doyle said at the opening of the yarning circle on Monday morning.

Member for Cootamundra Steph Cooke, members of the Gooloogong Historical Society, Gooloogong School P and C, parents and students gathered around the yarning circle for its official opening.

The school's student body took part in the ceremony reciting a Welcome to Country and singing the National Anthem while school leaders Grace McDonald and Zac Picker acted as joint emcees.

Speaking to those assembled Mr Doyle said: "I'd like to formally thank Mrs Emma Marr who was a key part of writing the submission (for funding) and Mr Jack Janetski of Forbes who did an outstanding job building our yarning circle".

Gooloogong Historical Society member Kate Thompson explained while newly constructed the yarning circle is made up of materials more than 100 years old.

"When this (school) building was built the builders were digging up foundations and said to our group, what are all these stones and bricks," she said.

Those stones were used to construct the yarning circle.

"Gooloogong Public School is recognised as being the earliest provincial school in this area," she said.

The first school was constructed in 1869.

"Your school has progressed to what it is today with great surroundings. You're all very lucky to be at the school like this with progressive teachers and all the facilities you could ever want.

"And today you're sitting on the stones that were put down for the foundations of the first school house. It's a wonderful idea that you can always remember," Mrs Thompson.

Member for Cootamundra Steph Cooke told the students each and every one of them would be able to use the yarning circle "for wonderful chats, sit around and brainstorm,"

"Year after year you have a beautiful place to come together. I know it is going to get great use for generations to come," Ms Cooke said.

Ms Cooke also made special mention of Ms Marr for her ongoing advocacy of the Gooloogong community.

"I know that you don't do it alone, but at the end of the day you're so humble, as a group we are so proud of you and your ability to wrangle people around an idea and push forward to make sure things happen for this community.

"In the last five years we have seen this community come ahead in leaps and bounds. The potential was always here and is still here but at the end of the day it takes great community leaders to recognise that potential and fight damn hard for every dollar to make that happen.

The investment we have seen in this community is paying dividends. Seeing this community go ahead in leaps and bounds over the last five years makes me very very proud.

"For me the easiest thing I can do is back this community because you are such a wonderful community," Ms Cooke said.