Upper Hunter MP Michael Johnsen recently joined Upper Hunter Shire mayor Wayne Bedggood, and members of the local community, to turn the first sod.

The contract was awarded to Hutchinson Builders, commonly known as Hutchies, who have set up their site sheds and will start working on the new building.

"The project will deliver a hospital to provide health services under one roof including an inpatient service, 24 hour/day emergency service, primary and ambulatory care facilities, ambulance bay, and staff accommodation," Mr Johnsen said.

"To ensure that all health services will continue without disruption, the project is being staged.

"Construction on the building will occur first and is forecast to be complete in the first half of 2021, before services are transferred and the new hospital is operational.

"The final works including demolition of the existing building, construction of new staff accommodation, and landscaping works, will begin in 2021.

"The overall redevelopment project is forecast to be complete in late 2021.

"Once construction of the new building is finished, the Murrurundi community will be invited for a walkthrough before all health services are moved over from the existing hospital.

"The design of the new facility includes a number of water-saving measures, such as capture and use of rainwater and greywater and the use of ultra-low flow water fixtures.

"All water required for the construction of the new hospital will be sourced separately to the Murrurundi town water supply."

The Murrurundi Wilson Memorial Hospital Redevelopment is being delivered as part of the NSW Government's $304 million Multipurpose Service program for facilities across rural and remote NSW.

The redeveloped facility will continue to operate as a hospital - and will retain its name.

Further information on the project is available at http://www.mps.health.nsw.gov.au/projects/murrurundi