Port Stephens Council has backed a plan to build a Koala hospital and tourism facility at Treescape Holiday Park at One Mile Beach.
The hospital is set to cost about $3 million, and will treat sick and injured koalas from the local area in a bid to protect the dwindling population.
The long-term sustainability of the koala population is key and Secretary for Port Stephens Koalas Ron Land believes the hospital could be the answer they've been looking for.
"It'll give us a chance to conduct emergency treatment and also long term care. The facilities that we currently operate are all home based and whilst they're very high quality we just can't sustain that model. We have to centralise our facilities and our long term benefits for our carers and our koala population."
One Mile Beach is the ideal place for the hospital, with 2.5 acres of natural bushland where there's already a colony of koalas.
The tourism aspect of the hospital is very important in bringing in revenue to keep the hospital sustainable for years to come.
"Port Stephens council has done a magnificent job in developing the business model and really without them, this project wouldn't have seen daylight," said Ron Land.