The funding from the NSW government will be used to create alternative habitat to the Gipps Street flying-fox camp, and create a buffer between the colony and the public recreation area on Kable Avenue.

Tamworth MP Kevin Anderson said when the bats decide to set up camp, the noise and odour could be a major concern for residents.

"The funding will be used to implement a flying-fox awareness campaign, install a fixed-binocular unit and education signage at the Gipps Street flying-fox camp; and host a community engagement event," he said.

"Flying-foxes are native to NSW and protected by law. We are working to protect these nomadic creatures but also to look after the health of our community."

Tamworth council is one of 15 local government areas to receive funding in this round of the NSW government's Flying-fox Grant Program that supports local communities living with flying foxes.