About 60 guests attended the new observatory at The Rock Showgrounds on Friday for the ribbon-cutting ceremony.

The new building and 16-inch telescope have been developed by Charles Sturt University (CSU), in collaboration with Lockhart Shire and The Rock Progress Association.

CSU adjunct senior lecturer Dr Allan Ernest recalled his first meeting with Progress Association about six or seven years ago when they were brainstorming for ideas to attract more visitors.

"I didn't think it was my place to open my mouth, but for some reason I did anyway. Why don't we build an observatory at The Rock Showground?' I said.

"Personally, I though the showground was a great location with its dark sky under the shadow of the magnificent wonder of Kengal, AKA The Rock Hill, and it would also make a great tourist attraction."

Dr Ernest said he expected skepticism but was instead met with enthusiasm.

Lockhart Shire mayor Greg Verdon said the opening of the observatory was a "magnificent occasion" for a project that "combines both tourism and education".

Observatory management committee chairwoman Gail Driscoll said The Rock was "a small village but we have a big dream".

"The observatory has grown from very humble beginnings to what you see here, it has been a project in the making for many years and it hasn't happened without the amazing contributions and efforts of many," she said.

CSU associate lecturer in physics Matilda Kyle said the observatory would cater for community viewing nights and school visits.

"The physics and astronomy group at Charles Sturt are looking forward to integrating the observatory into our astronomy and astrophysics teaching, giving students a great opportunity for hands-on experience in a regional setting," she said.

The project has been supported with $200,000 in grants from the NSW and federal governments.

"What we have developed here is quite special, it is going to enable visitors, particularly children, to come out here and be inspired about what lies beyond," Riverina MP Michael McCormack said.

Wagga MP Joe McGirr said he never imagined that he would one day attend the opening of an observatory in his own electorate.

"Of all the councils that could take us to the next frontier, I knew it would be Lockhart Shire," he said.