The new aquatic facility will replace the Parramatta Memorial Pool,which the NSW government demolished two years agoto make way for an improved Parramatta Stadium.
That decision sparked tensions between the government and the City of Parramatta Council over who should pay for a replacement.
On Monday,after more than a year of negotiations,Sports Minister John Sidoti said the state government would contribute $38.5 million to the project,which will be managed by the council.
The council also unveiled the design for the aquatic centre,which will feature a 50-metre outdoor pool with 10 lanes and a 25-metre indoor pool surrounded by Parramatta Park's Mays Hill Precinct.
There will also be learn to swim facilities,a fitness centre,change rooms,a cafe and parking spaces.
The lord mayor of the City of Parramatta,Andrew Wilson,expects more than a million visitors will use the complex each year for fitness,recreation,swimming carnivals,training and competitions.