The town council will get $3.5m from the Federal Government towards a $5m project to upgrade the landfill on its present site.
This will include a new waste transfer station, retail reycling shop, weigbridge, security gates and improved road network.
Mayor Damien Ryan says this will help the council achieve its goal to reduce the litter stream to the landfill by 50% over 30 years.
Mr Ryan says he's had a "win win" with the grant which comes from the Regional Development Australia Fund on which he is the Territory's representative.
Member for Lingiari, Warren Snowdon, says this is "a great project that will not only benefit the local community, but the surrounding regional areas as well.
“The project will create growth opportunities for business to use recycled materials, particularly glass, focus the attention of business, industry and government in the region on waste management practices and increase current staffing levels by approximately 50 per cent.
“Currently, businesses outside Alice Springs municipal boundaries are required to take hazardous waste like asbestos across state borders.”
Mr Snowdon says four local government areas will benefit from the project, including the MacDonnell Shire, Central Desert Shire, Barkly Shire Council and Alice Springs Municipality.
Meanwhile Shadow Minister for Regional Development, Adam Giles says while Alice Springs rubbish management needs are now secured for the future, it is unfortunate that funding was not made available for delivering real jobs and real economic development in the region.
Photo: Muddy tracks at the landfill soon to be a thing of the past.