More than 2300 premises on the western side of the Princes Motorway at Dapto can now connect to the National Broadband Network after the service was switched on on Friday.
"Today's announcement means Dapto is the next area across the country leading the way when it comes to fast broadband, with more than 9000 homes and businesses in the Illawarra region now able to connect via a fixed line service," NBN Co spokesman Michael Tyler said.
Throsby MP Stephen Jones pointed out that Dapto had been connected to Labor's fibre broadband network, not the altered roll-out planned by the Abbott government.
"I remain concerned about the fate of the rest of the region and whether they'll ever benefit from fibre to the home after the Abbott government's dismantling of Labor's NBN fibre roll-out," Mr Jones said.
"Today's announcement is a great win for Dapto, but I believe that everyone should have affordable access to the NBN, no matter where they live."
Chase Murray, owner of Alexander's Cafe, has already arranged for a technician to come in next week to connect his business to the NBN.
He felt it would help his business by being able to offer a faster, more reliable Wi-Fi for customers.
"It's definitely an advantage for me," Mr Murray said.
He said it was "unfair" other businesses might not get the same access.
"Everyone should have the same service."