A primary school has been announced for Murrumbateman, just months after the ACT government tightened its enrolment policies for students across the border.

NSW minister Pru Goward said the decision came amid "growing community calls" for a local school and the new Canberra rules, which whittle down the number of ACT schools NSW families can send their children to just a handful.

Timothy Pengilly races ahead with his dog Charlie as his parents Geoff and Roz Pengilly walk his sisters Angela and Hannah home from the bus stop. Credit:Sitthixay Ditthavong

"A school in Murrumbateman means many children will no longer need to endure long or interstate commutes to the ACT for their education," Ms Goward said.

Treasurer Dominic Perrottet confirmed money to plan the new school would be set aside in the NSW Budget, to be handed down next week, though an exact amount has not yet been revealed.