The Gwydir Shire Council (GSC) had already committed $2.05 million, and will now be able to move ahead with the process after the additional funds were pledged on Monday.

It is being funded by the Roads of Strategic Importance initiative, and is expected to improve freight times and connectivity.

Construction is scheduled to begin mid-year, and be completed by the end of 2022.

Member for Parkes and Minister for Regional Health, Regional Communications and Local Government Mark Coulton was also at the announcement, and spoke about the importance of the upgrade.

"This $8.18 million commitment to improving our local roads infrastructure is a major win for the northern part of the Parkes electorate, with benefits set to flow right across the community," he said.

"The upgraded County Boundary Road will support construction of the Inland Rail and local residential, rural and agricultural development, which will see this region continue to go from strength to strength."

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He stated the condition of the current road was something he'd been aware of for a while, given he was the former mayor of GSC.

"It's something I've been working on for a long time, to find suitable funding to upgrade this road because it is a very, very important road to those in the local area," he said.

After the project is done, it will be able to support trucks travelling at up to 100 km/h.

Mr McCormack said the upgrade of County Boundary Road could have significant flow-on effects.

"We are investing in this approximately 12-kilometre upgrade of unsealed road, better connecting freight to markets and improving heavy vehicle productivity to lower transport costs for regional businesses," he said.