The WA Government has announced a $5 million capital grant to support more key worker housing in the Kimberley.

The grant awarded to Kimberley-based, Indigenous-led Leedal (via Tarunda Housing Pty Ltd) will go towards the costs of design, development, and civil works to support delivery of 13 homes in the first stage of a key worker housing project in the Fitzroy Valley.

Leedal director Patrick Green told National Indigenous Times the investment was "a long time coming".

"It's good to see it come to fruition," he said.

"The importance of having key workers able to stay in the Valley stops the reliance on fly-in, fly-out workers who have to drive four hours from Broome on a Monday and four hours back on a Friday. It's a great benefit to the community to have full time staff living in the township."

Mr Green said there was more work to be done to address the Valley's needs.

"It's a start, and let's hope we can do more," he said.

"I did a study some years ago that identified if we had 50 additional homes they'd be signed up for straight away. We need over 100 more houses for key workers, because there are a heap of issues which need to be addressed on an ongoing basis."

The Fitzroy Crossing Key Worker Housing Project is being funded through the WA government's North-West Aboriginal Housing Fund (NWAHF) and will eventually deliver up to 51 homes. The NWAHF invests in Aboriginal-led housing programs and supports the delivery of housing as well as culturally informed support services.

On completion, the homes will be available to Aboriginal Community Controlled Organisations (ACCOs) and non-government service delivery organisations to meet demand for worker accommodation in the region.

Leedal is an Indigenous-owned organisation that operates tourist businesses and key town facilities in Fitzroy Crossing on behalf of six incorporated ACCOs in the Fitzroy Valley.

Kimberley MLA Divina D'Anna said the WA government is "continuing to make important investments to benefit the Fitzroy Crossing community, including in this development and the newly completed expansion of the renal health centre".

"This $5 million grant to Leedal means more secure homes for Aboriginal key workers in the community, also supporting the local economy," she said.

WA Housing and Works Minister John Carey said the government's partnership with Leedal will support the delivery of more homes for Aboriginal key workers in Fitzroy Crossing.

"These homes will ensure that low to middle-income Aboriginal workers are able to source affordable housing close to where they work," he said.

"It's part of our record $6.3 billion investment in housing and homelessness measures across the State since 2021."