The grant comes from round three of the Federal Government's Murray-Darling Basin Economic Development Program.
Director Donna Boaden has worked at the pre-school for 16 years and was ecstatic to be a successful grant recipient.
“It's been a long time coming and hard work has gone into it, we applied for that much but we didn't know if we get it,” she said.
The pre-school offers education for three to five-year-old children but will expand to encompass infant and toddler care services.
“We will now have the availability to enrol children from six weeks up to five-year-olds which is what the community needs,” Ms Boaden said.
“Families won't have to travel for care and can stay local — it will help the entire community.”
Work is expected to begin to towards the end of the year.
The project will create 11 new jobs in the early learning childcare sector.
Tocumwal Pre-school Management Committee treasurer and grant officer Stephanie Chappell said the development was an exciting step for Tocumwal and greater surrounds.
“Tocumwal is long overdue for a long daycare and now that it complements our already amazing pre-school, we could not be happier with the results,” she said.
“It's been a passion project of the pre-school for at least five years and we've been working with the Berrigan Shire, (Federal Member for Farrer) Sussan Ley and the two local schools.
“The way the building is situated, we couldn't expand our numbers, so it will be completely knocked down and re-built with four areas for the different aged groups, a common area and an outdoor area where we will be channelling natural resources to take it through to future years.
“We look forward to the seeing the community benefit beyond our immediate pre-school.”
Pre-school representatives will conduct community consultation to allow for community feedback.
The pre-school development is one of eight local projects awarded funding under the program, which also includes $250,000 for Barooga Sports Club to build a 5 km Bullanginya Lagoon arts walk.
Ms Ley said the grants were helping to strengthen and diversify the economies of local communities impacted by aspects of the Murray-Darling Basin Plan.
“Each of the proposed developments help these communities by using local suppliers and resources as well as local knowledge to drive the best outcomes for our region,” she said.
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