In 1946, the New South Wales Government approved the construction of the power station on Lake Macquarie at Wangi Wangi by the New South Wales Government Railways. Wangi Wangi was chosen for its proximity to a large body of water and coalfields. The power station was officially opened on 7 November 1958 by the NSW Premier, Joseph Cahill, after ten years of construction and two years of progressive commissioning of the six turbo-alternators from C. A. Parsons and Company, which gave it a capacity of 330 MW. One thousand men camped in Wangi Wangi during the peak construction period.