The state listed former post office on Station Street, Mittagong, was approved for restoration works by councillors last week, which included the construction of a detached garage/office space/storage space and a change of use to food and drink premises and tourist and visitor accommodation.

The ground floor of the building will be transformed into a caf seating 26 people inside and outside, with part of the ground floor and the entire first floor transformed into accommodation with five rooms, a lounge, foyer, store and spa room.

A two-storey detached building will be constructed with the ground floor providing three parking spaces and the first floor used as accommodation office space.

Another two-storey building addition will be built on the site as well.

Development application applicant Peter Mitchell said a "satisfactory" arrangement had been made for the building.

While there would be only the three car park spaces in the detached building and none onsite, Mr Mitchell said more spaces were "difficult" to achieve because the building was state heritage listed.

Councillor Graham McLaughlin said he was "pleased" to see the re-invigoration of the site.

"It's great to think that someone is going to invest their time and money into a heritage item like this, which is always very daunting because the heritage officers are fastidious with what they want," he said.

The development application was passed unanimously by councillors.