A proposed RV Park for a motorhomes has been supported in kind at the last general council meeting.

The Campervan and Motorhome Club of Australia (CMCA) plans to build a Recreational Vehicle Park by the river at 107-109 Chandos Street and Maitland Street.

CEO Richard Barwick said Gunnedah was the ideal location for one of their six planned parks across the state.

"We worked closely with council to lease a parcel of land, which council have assisted in finding a block, and take out a term of lease. All the development costs are ours... as a not-for-profit organisation," he explained.

Gunnedah has already proven to be an ideal spot. He said they CMCA held a rally there a few years ago which proved very successful.

"Our members loved the town and want to go back," he said.

"Added to that, Gunnedah has been quite proactive, especially through Councillor [Owen] Hasler ... and we like to develop initiatives in proactive towns."

And lastly, located on the Newel Highway, which gives good traffic flow in the area, connecting to bigger centres like Tamworth and Coonabarabran.

Common facilities include dump points, electricity, water and a communal shelter for barbeques and gatherings, as well as as the planting of trees.

Mayor Jamie Chaffey said the park will add to the region's tourist credentials and draw a new visitor demographic to the Shire.

"While we currently have parks with great amenities and facilities, there are groups of self- sufficient travellers looking for low cost spots to pull up," Cr Chaffey said.

"These tourists are currently setting up at free camping spots on our town's periphery.

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"The new location only 400 metres from the Gunnedah CBD will allow visitors to spend more time in town where they can take advantage of local shopping and dining."

With the land flood zoned, it means other commercial development would be unsuitable.

The project will be subject to a Development Application, which will be lodged in the coming weeks.