A rural Queensland town is giving out 10 blocks of land for just A$10 ($11 NZD) each.

Richmond, a cattle town west of Townsville, is trying to lure residents to the area by offering up 10 800 square metre chunks of land in a lottery, according to Daily Mail.

Entrants are asked to pay A$10 ($11 NZD) for a chance at one of the blocks, which will be theirs to develop.

About 1,000 people currently live in the 26,000 sqm Shire of Richmond, which is home to marine fossil Kronosaurus Korner museum.

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"Richmond is situated on the mighty Flinders River where there is water and good soil, and the farmers are on their way and we are continually receiving interest in property around the area," Richmond Shire Mayor John Wharton said.

"Currently there are no houses available for rent in Richmond, and there is strong demand for more rentals."

"Houses that have been on the market for some years are starting to sell, so this extra land is welcomed to allow our community to expand into the future."

Minister for State Development Anthony Lynham told The Courier Mail the lottery idea stemmed from the area's declining population.

Winners will be announced early next year.