The State Government has allocated more than $400,000 to build, buy or renovate accommodation at the health service in town, which is part of a campaign to attract more health professionals to rural areas.

Far West Area Health Service's upper western sector manager Stephen Batts said the service would look at obtaining three new high-quality transportable residences to make up the deficit of staff housing in Lightning Ridge.

Mr Batts said most of the local health staff were currently living in rental accommodation which was subsidised by the health service.

"This is a good opportunity for local developers to look at providing suitable accommodation for health staff to rent," he said.

The provision of suitable accommodation for staff was a prerequisite of the service in hiring new employees.

"It'd be nice to see health services staff get similar standard accommodation as teachers and members of the police service do," he said.

Mr Batts said a decision was still to be made on the location of the new residences.

"At present we only have three buildings placed behind the Accident and Emergency Centre, one of which houses two people, and the other two facilitating for one person each," he said.

"These new residences will fill requirements at this stage, and alleviate some of the housing problems being experienced.

"However, we could still have a gap (in housing) in the future, but that will depend on where our staff come from."

Meanwhile, the soon-to-be-built rural hospital and the ambulance station have received more than $250,000 for the purchase of capital equipment and Mr Batts said the extra money was very welcome.

"Credit should go to the health advisory council and the hospital auxiliary which had pledged to raise $100,000 by November," he said.

"I'm sure the funding received will assist in taking some pressure off these two groups in raising the funds for the rural hospital and health service."