Council has approved plans for the construction of a $15 million cotton gin to be built on Coonabarabran Road, at Colly Blue.

Liverpool Plains Shire Council deputy mayor Ken Cudmore said the gin is a win-win for the community.

"Liverpool Plains needs industry, employment, and numbers of people," he said.

"It'll employee half a dozen people within the community and also make it a lot better for the farmers on Liverpool Plains who grow cotton."

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The site will gin up to 30,000 tonnes of cotton each year for the local growers and provide cotton seed to nearby feedlots.

Councillor Cudmore said that having a gin nearby will save local farmers in transport costs.

Currently many farmers have to send their cotton bales an hour up the road to a gin in Carroll.

"Transport is a huge cost at the moment with fuel and the rest of it." he said.

"There is a lot of truck movement, so if it is right in the heart of where everything is growing they'll be able to deliver their cotton a bit better."

"The Carroll gin was just about fully booked ... so they needed another gin somewhere, so they can table all of the cotton growing in the area," he said.

The development application (DA) states that the construction of the site will be completed in stages, starting with a temporary storage shed for cotton bales.

The temporary storage site will enable the developers, Agri Hub, to start accepting cotton bales from local farmers before the gin is completed.

Cr Cudmore said the site will not be ready for cotton this year, but should be ready for the next season.

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