The state government will fund emergency dredging works in the Myall River after ferry operators warned a build-up of sand at the river entrance was about to make the township of Tea Gardens inaccessible.
The project, which is estimated will cost about $2million, will focus on the river's navigation channel.
Port Stephens MP Kate Washington said the work would commence as soon as possible after the necessary approvals had been obtained.
It follows similar dredging projects that have been undertaken in recent times at Forster, Swansea and Woy Woy in response to rapid sand inundation.
The concerns of community groups, ferry operators and oyster farmers about the effects of the sand build-up throughout the estuary have been growing louder over the past year.
The Maritime Infrastructure Office undertook a hydrographic study of the river last September and confirmed there was significant sand build-up in the man-made navigation channel at the estuary entrance up to the Singining Bridge at Tea Gardens.
"The Myall River is the life blood of Tea Gardens and Hawks Nest - it underpins the health, happiness and prosperity of this beautiful community," Ms Washington said.
"Whilst we'd all like to see the dredging start tomorrow, I'm looking forward to it kicking off as soon as possible.
"This is a win for our community and their longstanding advocacy for this vital waterway. I've been backing their push to keep our waterways healthy and safe for years, and will always do so."
The town's chamber of commerce estimates about 1500 people travel from Nelson Bay to Tea Gardens per week. Each passenger spends an average of $70 per visit.
Y-Knot ferry operator Noel Gaunt said the river entrance had become virtually impassable in recent months.
"We've had motor damage from the mud we have been picking up everytime we hit the bottom," he said.
"It's going hurt until it gets opened up but it's a huge relief to know it's going to be fixed.
Myall River Action Group spokesman Gordon Grainger said clearing the navigation channel was the first step in a three part campaign to improve the waterway's health.
"(Dredging the navigation channel) is the most important from a commercial perspective, but safety wise, we also need the area above Tea Gardens into the lakes to be cleared," he said.
"We have a big influx of people on jet skis and most of them have absolutely no idea how dangerous it is."
Opening up the natural channel was the other goal.
"We want that opened on a permanent basis because that will provide oceanic water to the estuary system and return the river to its former pristine condition."
Ms Washington said the government was developing a 10-year statewide dredging program.
"We need to be proactive rather than reactive," she said.
"The statewide dredging plan will have the approvals in place so that the work can be done when it needs to be done."
"All of the areas are so dynamic and change all of the time. Putting a rigid plan in place to do it every five years isn't workable anymore.
What we are seeing in the Myall River navigational channel hasn't occurred since I've been in this position before.
She said discussions would continue about the natural channel.
"At the moment the priority has to be the navigational channel and then conversations will continue about if anything else needs to be done," she said.
Transport Minister Jo Haylen said the dredging project would make it easier and safer for recreational and commercial boat users to navigate the river.
"The Myall River is an important waterway for the Port Stephens community and visitors, and the NSW Government is committed to working with MidCoast Council to keep it accessible," she said.
"The NSW Government is grateful to the community for its advocacy and delighted to be able to deliver this much-needed dredging campaign."
