Pinjarra will soon boast a new $2.3 million bus depot with construction to get underway later this week.
Works on the Harries Way site is expected to be completed by early 2020 and take significant pressure off of the Mandurah depot, which is currently at capacity.
A new administration office, existing on-site workshop upgrade and the installation of a hardstand, fencing, lighting and CCTV are all expected as part of the project.
The depot will initially house nine buses with the ability to host 30 when it is fully developed.
Murray-Wellington MP Robyn Clarke labelled the new bus depot a "huge win for the local Pinjarra community".
"I speak to local Pinjarra residents all the time and they continually raise the issue of public transport with me," she said.
"It opens up the possibility of increased future bus services in our local area.
"While this is a big step forward, I know how important increased bus services are to our community, and that's something I am continuing to fight for."
Currently, Pinjarra buses must travel 18km from the Mandurah bus depot before they can enter service and then need to travel back at the end of their shift.
Operating without passengers, also known as 'dead running', for such a long distance creates significant costs for extra fuel and maintenance.
The depot is expected to create significant cost savings by reducing the use of empty buses and minimising the risk of timetable delays if a bus gets stuck in traffic on the way to its starting point.
So far, 47 per cent of the project's sub contractor awards have been granted to local Peel and South-West businesses, including a $1.3 million tender to Shelford Construction.