The Shoalhaven UOW campus at West Nowra will be home to the observatory, with construction expected to be complete towards the end of 2022.

Shoalhaven Astronomers, who host events to show locals the wonderful phenomena from above through their telescopes, are thrilled about the project.

Read more: Shoalhaven farewells Violet Lord

Vice president John Gould said the observatory will offer a much better viewing experience for the public and provide a safer indoor location.

"Setting up a telescope in the Nowra Showground or a caravan park with the community was problematic," Mr Gould said.

"Because of the elderly and children, we were almost prohibited from doing it at night due to the risk of people falling ... people only really got to have a look for about three to five seconds before we had to give somebody else a go.

"This observatory will certainly solve that and allow a large number of people to view at the same time in a in a warmer and safer environment.

Shoalhaven Astronomers are in the process of lodging development plans with Shoalhaven City Council.

Mr Gould said the observatory will have a three and a half metre dome-shaped roof, will contain a large telescope and be able to fit a few people inside.

The telescope's vision will project onto a lecture theatre at Shoalhaven UOW for large groups to view in real-time.

"We're still going through the details of the operation of the facility with the university," Mr Gould said.

"But we'll use it when there's a great astronomical event occurring and the community may like to come along and view it from the lecture theatre as it happens.

"There's always something happening ... in the last 12 months, we've had a number of comets pass through and Saturn was occulated behind the moon.

"People can never believe what they see."

Read more: Where there's a will there's a way - Steve hits the surf again

Shoalhaven Astronomers were granted $60,000 from the State Government to cover costs of the project.

Kiama MP Gareth Ward welcomed the venture and the benefit it will bring to the community.

"We're now getting a great connection between the university and a piece of equipment that can educate and inspire more young people to get involved in literally aiming for the stars," Mr Ward said.

We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.