Construction will begin on a new ambulance station beside the Rural Fire Service Station at St Georges Basin.
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The state government will spend $5 million on the site.
Ambulances will be dispatched from The Wool Road station to Sanctuary Point, Old Erowal Bay, Basin View, St Georges Basin and Vincentia.
“This is a huge, growing area of the community,” South Coast MP Shelley Hancock said.
“Sanctuary Point Public School...it’s a growing school with lots of young families, and where there’s young families there are kids having accidents that need the help of our ambos.”
Initially, it will not be manned around the clock, with six paramedics planned to start once work is complete late next year. There are plans for the station to be manned on a 24 hour basis.