The Narooma Mountain Bike Club is celebrating approval to develop trails in Narooma's surrounding state forest.
Club president Georgie Staley said the club was a step closer to making Narooma a "world class hub" for mountain bike tourism after a recent agreement with Forestry Corporation of NSW.
She said the club was given rights to use an area of the Bodalla State Forest, opposite the Mort Ave turnoff on the Princes Highway, Dalmeny.
The goal is to develop a network of trails, with 30km of track complete.
"We are looking at three stages; the first is finished and available to be ridden by club members and the public," she said.
"We are using World Trail, who developed Darby's trails in Tasmania - they are most successful in Australia and world-renowned."
Looking at the success of mountain bike tourism in Tasmania and at Tathra, Ms Staley wants Narooma to be the next biking destination to boom.
"We want people to be able to do a circle of mountain biking, to visit Tathra, Eden and Cooma - all of those places need the economic support.
"We have seen how mountain bike tourism internationally and in parts of Australia has provided a significant boost," she said.
"We have a perfect climate to mountain bike all year round.
"Visitors will have direct access to accommodation and hospitality businesses in Narooma, plus there are so many other things for visitors to do when they come here.
"We see this project as being a driver for jobs and the development of new businesses to cater for the anticipated influx of mountain biking tourists."
Ms Staley said the trails would cater for all skill levels, and be "family friendly".
The club has carried out planning and design work and appointed a consultant for the business plan with Foundation for Rural and Regional Renewal funds.
The next step was to secure grant funding for design and construction.
"The signing of the agreement with Forestry Corp and confirmation of the FRRR funding both came in the same week and represent a strong endorsement of what we are aiming to achieve," Ms Staley said.
"Both organisations have been great to work with. We all know the challenges our town and region has experienced in the past 12 months, so the momentum we are building is doubly important and is a shot in the arm for the local tourism industry which has always been seasonal in nature."
The official opening of the project will be on November 27.