The NSW government will fund the project as a part of the Crown Lands funding and the remaining COVID-19 stimulus.

Minister for Lands and Water Kevin Anderson will be meeting the committee Monday to speak about the future of the grounds.

Trust chairman Henk van de Ven said the facilities weren't up to standards and didn't comply with the mandated rules.

He said guests needed to have access to bathroom and laundry facilities within a 90 metres range on the camp grounds.

"Our camp facilities aren't up to scratch, and we hope our income stream improves with new facilities and people come to stay, which will benefit the community," Mr van de Ven said.

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"It's a great community facility in town; we just need to make the most of it."

The not-for-profit organisation has faced an array of struggles over the last two years.

Showgrounds volunteer Susie Hardwick said every cent would go towards maintaining the grounds and buildings.

"We want to get it all up to standards so people will use them," she said. "We hope upgrading will bring more people to Albury.

"Our camping fees are considerably less than a caravan park, so people can use us as a base and then spend their money in our community.

"Camping on the showgrounds will continue. If we didn't get the grant, we wouldn't be able to afford it ourselves; therefore, we wouldn't be able to continue camping."

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