"We have achieved funding for Stage 1 of the project and so, unless there are unforeseen circumstances, the main 25 metre outdoor pool is on target to open on December 1," Upper Lachlan Shire Council General Manager Colleen Worthy said.

"I want to reiterate my thanks to Angus Taylor and the federal government for their $2,066,918 in funding that, combined with Council funding has made Stage 1 possible."

The demolition work that is currently under way will first remove the buildings before working on the pools.

Mrs Worthy said she understood that there would be some disappointment in the community regarding the demolition of the old facade.

"We received feedback from some people who wanted the facade retained, and even more feedback from people who didn't like the facade and were happy for it to be demolished," she said.

"We investigated the heritage aspects and although the site is not locally heritage listed we wanted to take all of that feedback on board. So while the facade will come down the plaque and sconces will be incorporated into the new pool complex design and council aims to have a mural painted on the outside walls that helps tell the history of the site... a recommendation by a local who suggested this as a good compromise.

"We have now expanded the capability of the site and created room for additional facilities, the old pool complex embedded and remembered in the new."

Mrs Worthy said that council was expecting a reply about its grant application for stage 2 of the project early in July. Stage 2 will include a baby pool, change rooms and a heated pool.