Oxley MP Melinda Pavey has allocated $100,000 towards the course from the NSW Government's Stronger Country Communities Fund.

The money provided will be put towards Stage 1 of the project that will involve planning, designing and preparing the site with the inclusion of a new future-proofing underground water storage tank for irrigation - and electrical works.

The course will be surrounded by fencing to ensure the security and welfare of participants and will be a designated alcohol-free zone.

"This will be a great facility for local families, businesses and visitors to Crescent Head," Ms Pavey said.

"This attraction will be unique in the area and will bring visitors from far and wide, supporting local businesses and the economy, and further enhancing local tourist infrastructure for visitors."

The course is estimated to be around 1600 square metres and built on land owned by the country club.

Colan Ryan, manager of the Crescent Head Country Club, expressed a desire for the club to be improved in a sustainable manner with water saving initiatives a part of the plan in response to the recent drought.

"The project will create initial work opportunities through the construction process," Mr Ryan said.

"It will also create benefits to the wider business community and employment opportunities for local young on an ongoing basis.

"It also establishes the basis for a great water saving opportunity and sustainable practice for improving the golf course."