The state government investment will increase funding for Regional Arts Development Organisations (RADO) such as Arts Upper Hunter to $200,000 per annum, an increase of $32,000 from the previous year.

Arts Upper Hunter (AUH) executive director John O'Brien welcomed the NSW government's increased investment in regional arts.

"This is a great sign of the value that the state government puts on the creative industries in the bush," Mr O'Brien said.

"This extra funding will be put to a range of uses, including some employment, and a new round of our very popular Microgrants, for a start."

NSW Minister for the Arts Don Harwin said the boost in funding was proof the state government was serious about investing in arts talent across NSW.

"We know that regional communities do well when they run their own show," Mr Harwin said.

Mr O'Brien said audiences and creatives across the Upper Hunter would benefit from the extra funding.

"Local talent also means opportunities for local audiences, opportunities for excellence that doesn't leave the area, and the chance for artists to move to the next stage of their career," Mr O'Brien said.

The Regional Arts Network has been developed over the past 30 years with core funding from the NSW Government and through local Council support, to assist RADOs to inform and promote arts and cultural activity within the local community including opportunities for creative professionals in the regions.