Member for Oxley, Melinda Pavey said the project will be funded from the NSW Government's Regional Growth, Environment and Tourism Fund.

"With the contribution of state government funds, Kempsey Shire Council can deliver the project and direct savings to other much-needed road maintenance and rehabilitation work in the shire," Mrs Pavey said.

The announcement has been met with concern from a number of Crescent Head locals who are against the tarring of the road.

"It's a sad day for us here in Crescent Head. The response we've received on Facebook about the announcement has been strong. It's disappointing," resident Amy Bruce said.

"We're starting to see the real Crescent Head Masterplan with this announcement, the tarring of Maria River Rd and the approval of the four storey apartment block, these decisions just show that the real plan for Crescent Head is a lot of development."

Mrs Pavey acknowledged the concerns of locals and said the decision is in the best interest of long-term interests and the broader community.

"The sealing of Point Plomer Rd has been discussed in the community for many years and there are range of views - for and against.

"I am very aware of the significance of the road to the surfing, fishing, walking, camping and 4WD members of our community, and I do understand the desire for 'localism' and 'status quo'.

"Even so, I am also mindful of the fact that communities and visitors strongly prefer using sealed roads, and governments make decisions for the long-term interests of the broad community."

Ms Bruce said many residents are concerned with council's 'disregard' for local Indigenous culture.

"We are disgusted by council's lack of regard for the Dunghutti culture," she said.

Kempsey Shire Council's general manager, Craig Milburn, welcomed the funding to seal the road at minimal cost to the community.

"From an operational perspective, sealing the road is primarily about improving safety with added benefits being amenity and reducing maintenance costs for ratepayers," he said.

"Council can now undertake preliminary project planning, including legislated environmental assessments, ahead of commencing sealing works in 2020."