Flying cars capable of reaching speeds of up to 300km/h will be tested in a new facility in New South Wales (NSW), Australia.

NSW will spend just over NZ$1 million to build a "state-of-the-art" testing facility for the flying cars in Narromine, near Dubbo.

The facility will test AMSL Aero's new flying vehicle, a driverless flying car that can carry six passengers and reach speeds of up to 300km/h.

"Imagine the convenience of having a flying car land in your suburb when you need to travel to a regional destination that is not serviced by an airport," said NSW deputy premier John Barilaro.

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"It sounds like science fiction but the reality is a future where this is possible, practical and affordable is not that far away."

The flying cars are described as "Vertical Take-Off and Landing" vehicles (VTOLs). They are entirely battery-powered and designed to be able to take off and land like a helicopter.

The testing facility is expected to open early next year.

"It's fantastic to see businesses expanding and bringing job opportunities to the electorate of Dubbo, especially given the drought and Covid-19 has forced many locals out of work recently," Dubbo MP Dugald Saunders said.

"We are a resilient bunch, we have a dynamic workforce here in Dubbo, and here is the perfect location for a company like AMSL Aero to expand and grow."

Narromine is considered Australia's gliding capital.