The gallery was crowned as one of the winners on May 13, and came out on top in the Adaptive Re-Use category.

Stephenson's Mill in Crookwell, and the Walsh Bay Arts Precinct on Sydney's harbour, were also declared winners in this category.

Gallery board member and contemporary artist Ben Quilty said the accolade was "fantastic".

"It's nice to have recognition for how special the building is," he said.

"It is a testament to the vision and planning of our architects, Tonkin Zulaikha Greer Architects (TZG) and builders, Richard Crookes Constructions," said Ngununggula director Megan Monte.

Elements of the former veterinary clinic and dairy were highlighted to showcase their histories, such as showing the original walls, and strips of grass to indicate where cows were washed.

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The space in Bowral has been converted into a climate-controlled hub that can store different artworks and exhibitions.

Ngununggula is also on track to be the first gallery in the country to run solely on renewable energy, thanks to a $450,000 government grant.

Mr Quilty said the heritage award was a win for staff, artists and members of the community who have pushed for a regional gallery in the Highlands.

It also shines a spotlight on the space, and what it offers to residents.

"Such acknowledgement brings with it a real buzz of excitement, and I am sure we'll be welcoming a number of new visitors to Ngununggula," Ms Monte said.

The next exhibition titled Land Abounds, is currently being installed and will be open to the public from May 28.

Ngununggula was one of 12 winners that were awarded from 49 finalists across Australia.

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