The New South Wales Government is being urged to consider moving Sydney's Powerhouse Museum to a regional city instead of Parramatta.

The Government's plan to move the museum to western Sydney has sparked opposition from prominent figures in the arts, science and business sectors, including former NSW Premier Bob Carr and actress Cate Blanchett.

They were among more than 10,000 people who signed a petition last month calling for the State Government to reconsider its plan.

But the Orange City Council, in the state's central west, says the Government should consider relocating the Powerhouse to a regional area.

Councillor Jeff Whitton said there would be enormous tourism potential in basing the facility in a regional city such as Orange.

"I would hope the Premier or the Minister, if they are seriously looking to relocate the Powerhouse Museum, that they would consider a regional location," Councillor Whitton said.

"Because that would certainly give a great boost to tourism for Orange but also for the wider region.

"Certainly we have asked the staff at Orange City Council to investigate whether the Government would consider moving such an icon to a regional centre such as Orange."

Central NSW 'teeming with natural and cultural heritage'

The region's peak body for tourism said it would "100 per cent" support calls to relocate the Powerhouse Museum to a regional area.

Central NSW Tourism acting executive officer Lucy White said the region contained a large amount of historical significance and would be well-placed to host the facility.

"Central New South Wales is absolutely teeming with natural and cultural heritage," Ms White said.

"I think outside Tasmania we've got the largest listing in Australia, and that's around 1,130 naturally significant or cultural heritage sites, so yes it would be a particularly suitable addition I would say."

Ms White cited a report by Evocities that found the 26 cultural facilities in regional New South Wales cities contributed $61 million dollars to the state economy.

She said she was hopeful the Arts Minister and Member for Dubbo Troy Grant would be sympathetic to calls for the museum to be based in the central western area.

"It would be a great move for the State Government to invest in regional New South Wales," Ms White said.

The Orange City Council said it would contact the Government to see whether there was scope to base the museum in a regional centre.