Known as a primitive camp site, caravanners are only able to stay a maximum of four nights. 

The decision ends a two-and-a-half year battle for the approval.

Society president, Bob Kennett, praised Port Macquarie-Hastings Council for its decision.

"Council was great to work with on this matter as were the councillors," the show society boss said.

"And I know the community will also get a benefit in the short and long term too, because we will be able to improve the showground facility from the funds we generate.

"As well, we have anecdotal evidence that local business benefits from events we host here too." Mr Kennett said the caravan site, which includes a dump site, was much-needed for the area.

"It doesn't only help the show society but it also helps the entire town.

"We believe that this decision has wider ramifications and has the potential to really put Wauchope on the map as far as a caravan destination is concerned.

"The show society is working with council to help us connect with organisations including the Caravan and Motorhome Club of Australia ... we can put Wauchope on the map." Mr Kennett said the decision to place the dump point at the showground was also sensible. 

"Council did raise some concerns about vandalism at some various other venues ... but it just makes sense to have the caravan park and the dump point in the same area," he added. 

The showground last weekend hosted a motorhome rally which, Mr Kennett said, provide a financial boost to the wider community.