The base will be the state's first offshore unit located on the island about 568kms east of Port Macquarie.

The subtropical tourist destination has a population of 400, including a significant boating community. The unit would be the island's first dedicated marine search and rescue capability.

Lord Howe Island resident James McFadyen, who has previously worked with Sydney Water Police for five years, said the improvements to their rescue capabilities will be welcome.

"I'm really excited about it and it's been a long haul, there's a lot of work to do yet," he said.

"The seas can change drastically out here, so you need a a capable vessel.

"Historically there has been towing for local vessels, medical transfers for cruise ships and commercial vessels but there is also potential for assisting larger vessels or private aircraft.

"The big difference for this unit compared to other units across Australia is that our community has an enormous amount of commercial boating experience. We will need at least 10 volunteers but we may get many more.

"The unit will be operated by experienced island volunteers for the initial startup to get this up and going."

Mr McFadyen said the unit would hope to use a 16m former NSW Water Police vessel, after it has been refurbished.

The unit will provide expanded marine VHF radio coverage around the island and into the surrounding Tasman Sea.

Crews will assist local boaters, watercraft users and transiting vessels through 24 hours a day, seven days a week monitoring of VHF Ch16.

Marine Rescue NSW operational executive Commissioner Stacey Tannos said the island was an ideal place for a unit to be operational by the summer of next year.

"It's part of the jurisdiction of NSW and falls under the Port Macquarie region for a number of different government purposes," he said.

"Per capita ratio it probably has the highest concentration of boats.

"There are tourists who want to take part in boating activities when they are over there, it is also a popular destination for transit vessels as well.

"It was identified that a specific capability needed to be established on the island and that's where we come into play."

Professionally trained members of the community will be operating in the open ocean up to a maximum of 200 nautical miles around the island.

The unit is expected to be established by the summer of 2020, final costs are yet to be determined, according to a Marine Rescue NSW spokesperson.

Maritime rescues on the island were previously undertaken by residents, Department of Fisheries, Parks and Maritime or the Ports Authority.

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