Illawarra councils will share a $1.35 million dividend declared by Southern Phone this year, the result of a $2 investment in the company more than 10 years ago.
Wollongong City Council is among the 41 shareholders in the community-owned telecommunications company.
The dividend is paid in proportion to the amount of business generated in each local government area.
Residents in the Illawarra and surrounding region will reap rewards with a $115,649 return to Wollongong, $208,086 to the Shoalhaven, just under $47,000 to Shellharbour City Council and $35,843 to Kiama Municipal Council.
The company was formed in 2002 by several councils in NSW to deliver more affordable telecommunications services to the community.