While the big end of town is busy with bidding wars and player poaching, one local Group 6 club is kicking goals without wearing out the chequebook.

According to Mittagong Lions president Neville Dillon, the club's youth policy is reaping big rewards in the division two competition.

"We have the youngest side in the division two comp and for the first time in a lot of years they are nearly all locals," he said.

"Because of the strength of our juniors it's easier for us to encourage them through to the senior ranks and it's starting to pay dividends.

"When we were in first division we had to buy imports but now we're in second, we can ease the young ones into the higher grade without exposing them to the higher profile northern end players."

With the help of long-time sponsor Mittagong Hotel, the Lions top side is beginning to forge a fearsome reputation in the Highlands dominated division.

Led by classy pivot and captain Tim Shepherd, the young side notched up their biggest win of the season on Sunday, knocking off the well-regarded Mt Annan side on their own turf.

"They're a great young team and they've done such a good job," Mittagong Hotel licencee Andrew Crompton said.

"They were written off at the start of the season but they've come back.

"The effort that they've put in has been amazing and I just can't say enough about them.

"It's also good to be able to put something back into the community."

As post match headquarters for the club, Crompton admits that the team's recent good form certainly keeps the barmaids on their toes.

"I must admit when they win they tend to celebrate a bit harder," he said.

"They seem to really enjoy coming here and we enjoy having them."