Merrigong Theatre Company will receive $75,000 funding for its new production Landscape with Monsters, announced on Wednesday by Minister for the Arts Troy Grant.
The stage show will be co-produced with Brisbane-based company Circa. According to artistic director and chief executive Simon Hinton, the funding will be a "shot in the arm" for the new production.
"It will be the biggest production that we've mounted," he said. "The funding allows us to be ambitious artistically."
Mr Hinton said the co-production would aim to encompass the ethos "stories of local relevance, universal resonance".
Minister for the Illawarra John Ajaka said the funding was a great opportunity to showcase local talent.
"I'm very confident the new works will be taken around the entire state and the country," he said.
The selection for funding was merit-based, according to Mr Grant, who said he was proud to support Merringong.
"They have a wonderful reputation of putting on good shows; they've got a great track record and this theatre is very important to the area."
Mr Grant said his focus would continue to be on supporting the arts without question. "Someone asked me recently if [funding the arts] is a good spend of money - I don't know if there's a better spend of money. It adds so much to our community. It brings a great gift."