Ulladulla Children's' Centre will receive a $21,000 grant from the State Government Climate Change Fund.

The grant will enable the centre to install rain water tanks which will be used to capture rainwater to flush the centre's toilets and a solar hot water system to reduce the centre's energy consumption as part of the Centre's 'Ulladulla Eco-Kids' sustainability program.

The work is expected to be carried out early next year.

The childcare centre has identified in their asset management plan other Ecologically Sustainable Development (ESD) principles including solar photovoltaic cells and ceiling insulation.

Shoalhaven mayor Paul Green said council was encouraging all community organisations that are using council's facilities to develop asset management plans that identify operational requirements and desired enhancements.

Council can then support submissions for grant funding.

"Council is keen to work with all community associations to ensure that the Shoalhaven gains the maximum benefit from the funding under the State Government's Public Facilities Grants Program," Cr Green said.

"These grants currently provide funding for water and energy saving projects in places such as early childhood centres, community buildings, sporting facilities, museums and art galleries," Cr Green said.

Council is assisting the Ulladulla Childcare Centre with funding of up to $10,000 to enable it to become a greener and more environmentally friendly place to work.

"Council is encouraging all associations which occupy council-owned buildings to identify in their asset management plans potential energy and water saving initiatives," Cr Green said.

"This puts groups in a good position to secure grants from different levels of government."

Centre director Margie Reed said the use of the energy and water saving technology will be incorporated into the day to day running of the centre and into the teaching program for the children.