A ceremonial turning of the sod was held at the site of the soon-to-be replaced Karuah Police Station, housed in a demountable building in Engel Avenue, on November 1.

In a first for NSW Police, the modular station, worth about $1 million, will be built off site and then installed to replace the current station.

The ceremony was attended by NSW Police Northern Region Commander, Assistant Commissioner Max Mitchell APM, Taylor Martin MLC, the Liberal Member of the NSW Upper House for the Hunter and Central Coast, Port Stephens MP Kate Washington, Port Stephens-Hunter Police District officers and Worimi elder Uncle John Ridgeway OAM.

"Having local police in their area, being able to establish those relationships, is so very important to policing our local rural communities," Assistant Commissioner Mitchell said.

Minister for Police Troy Grant announced in November 2018 that the NSW Government would build a new station in Karuah.

It came after NSW Premier Gladys Berejiklian announced in June 2018 that $1 million would be spent on upgrading the historic weatherboard Tea Gardens Police Station.

In January, Mr Elliott further announced that Lemon Tree Passage would receive a new $1.5m station in the next three years.

Officers will move from the current cramped premises in Cook Parade and into an all new station.

"It's terrific news. Port Stephens will have three modern police stations, the one here at Karuah, at Lemon Tree Passage and Tea Gardens in the very near future," Assistant Commissioner Mitchell said.

"These will be open and policed by local officers, communicating with and building relationships with their local communities."