The NSW Government has committed $3 million dollars and Shoalhaven City Council $1 million to fund the development of the next stage of Flinders Industrial Estate.
Stage 10 involves developing 14 new industrial lots, with the two governments investing the equivalent of $285,000 per lot. This also includes building the roads, sewerage and other infrastructure.
But Kiama MP Gareth Ward said more than $4 million may need to be spent on the development.
"There's obviously a lot of lots here and I know that there are some property owners here that will obviously want to see more done and that's entirely appropriate," he said.
Shoalhaven Mayor Amanda Findley said large industrial land is in demand
"Shoalhaven City Council doesn't look at this development as a profit-making adventure. This property development is actually about creating blocks of land that are needed for industry," she said.
"Particularly for those bigger blocks for big businesses that can't be in town and that they outgrow their town slots very quickly."
Mr Ward said the Shoalhaven's population is set to expand hugely in the coming decades.
"We need to make sure that we have businesses come to the region and in order to do that, you need to have these blocks that are shovel-ready or business-ready," he said.
"That's exactly what we're seeking to do."
Two other industrial areas under currently under development by Shoalhaven City Council including the Albatross Aviation Technology Park and a site in Huskisson.