The RSPCA's shelter at Unanderra will build a new cattery with $420,000 in state government funding.
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"For RSPCA NSW the upgrades will help us to help every animal that comes through our doors for decades to come," RSPCA chief executive officer Steve Coleman said.
"Our facilities not only provide shelter and vet treatment for animals, they will help us to continue to support, educate and help communities across NSW in responsible pet ownership and animal welfare."
The funding for the Illawarra shelter is part of a $10.5 million package for 10 RSPCA facilities across the state.
"The enhanced facilities will no doubt help the RSPCA carry out its important work, particularly its invaluable pet adoption services, community assistance programs and animal rescue services," Local Government Minister Shelley Hancock said.
Other projects in NSW include veterinary hospital upgrades in Broken Hill and the Hunter, and a dog park and an emergency response centre in Sydney.
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