A NSW Government grant of $325,200 will benefit two Walcha organisations and help set the benchmark for similar ventures across the state.
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The funding will enable the Walcha Men's Shed to move into the currently disused Walcha Scouts premises.
Under the agreement the Scouts will also be given use of the new facilities should they reconvene.
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"This is a tremendous win-win for both Walcha organisations and I congratulate those involved for their foresight in working towards a common goal," State MP Kevin Anderson said.
"It's great the NSW Government has also come on board and I am looking forward to the project's completion."
Walcha Men's Shed President, Gerry Moran said consideration is now being given to possibly building a completely new facility or refurbish the existing premises.
"We are assessing the amount of room required for each section of the shed's operations, including for metalwork, woodwork and the nursery," Mr Moran said.
"Following the donation of a greenhouse, there are plans to considerably extend the nursery which will be watered from the shed's own catchments and held in two 20,000 litre tanks."
Under a 20-year lease agreement, should the Scouts reconvene, they will have full use of the kitchen, toilets and lunchroom and be provided with space for equipment.
"This is a first for the Scouts, which is now using the agreement as a model for similar ventures across the state," Mr Moran said.
"Some of Walcha's Men's Shed members used to be Cub and Scout Masters at Walcha.
"As long as there is a Walcha Men's Shed, there will always be an opportunity for the local Scouts to reconvene and utilise our upgraded facilities.
"We appreciate the contribution made by the NSW Government through the efforts of Member for Tamworth, Kevin Anderson," he said.
