That's exactly the vision a group of Kiama residents has for the disused Bombo Quarry there, with plans to transform it into a purpose-built festival and major events space for the Illawarra.

Proposed as the "Kiama Epicentre", the entertainment precinct would be developed as the potential new home of Yours and Owls and the Illawarra Folk Festival, catering for thousands of patrons per day.

Read more: Hot Summer Night concert brings pub jukebox faves to Wollongong

Most of the land in question is owned by Boral and Transport NSW, with smaller parcels owned by Kiama Council and Cleary Brothers.

Boral hasn't been in operation there since 2014. According to their website, they want to eventually rehabilitate the site so it can have alternative future land uses.

Peter O'Neill is one of the campaigners leading the charge, with more than 80 community members so far supporting the proposal.

Mr O'Neill told the Mercury the precinct would only account for around 16 per cent of the 114-hectare space - which he said also had potential for 2000 new homes plus industrial, commercial and retail development.

The proposal also outlines other ideas for development such as tourist facilities, a hotel or large resort complex, markets and affordable housing.

Read more: A vibrant new tenant moves into struggling Crown Street Mall

The Epicentre would be sited partly within Bombo Quarry, as well as adjacent farming land.

It would also include a community cultural arts space, community garden, camp-site, children's nature play area plus ample parking and a bus stop.

"Companies like Boral, they are a commercial company and they want a good return, and they have had a successful history of redeveloping the quarries they've finished with," Mr O'Neill said.

"In any development like that, there has to be land dedicated for community use.

"When it's not being opened for festivals and events it would be open for the public to use."

The group (Kiama Epicentre Association) already have been conducting site tours with major stakeholders - like council, festival producers, entertainers and resident groups - to discuss their proposal in depth.

Read more: How Streets Ice-Cream began in a Corrimal backyard as 'Cream of the Coast'

Mr O'Neill vowed to dedicate years to what is currently a conceptual plan, as he said it would require input and approval from community and cultural groups, festival and event organisers, land owners, government agencies and Kiama Council.

Kiama Mayor Mark Honey has looked over the plans and believes it is a great idea but has reservations about the project.

"I think it's a fantastic idea, but I think the constraints of it going ahead in the foreseeable future are probably overwhelming at this stage," Cr Honey said.