The group was one of eight NSW Local Aboriginal Land Councils to receive funding from the Environment Protection Authority's Aboriginal Lands Clean-Up and Prevention program.

BLALC chief executive Craig Foreshew said the money would be used to clean up large dump sites in the bush reserve surrounding Morisset Hospital.

"[It] has been used as an unofficial tip site for years," Mr Foreshew said.

"We estimate that in most dump site areas we could collect up to three skip bins of rubbish a day for the first few weeks."

The money will also be used to prevent further dumping, with BLALC planning to install gates and fencing at entry points.

The group also plans to regenerate all dump sites with native plants that have been propagated from seed, which were collected from the site or nearby.

"We hope to eliminate the illegally dumped rubbish from this site through this project, while restoring the beautiful bushlands area to what it once was," Mr Foreshew said.