Warrigal Care's plans for a $70m retirement living and aged care village facility have been approved for the NSW locality of Shell Cove.

Pam Allen, chair of the Joint Regional Planning Panel said that it is "the single largest project of that kind that has ever been approved in the greater Illawarra and there was obviously a lot of support for that.

"There are a number of jobs that are going to be created and it certainly revitalises a fairly tired industrial area around that Shandan Circuit vicinity.

"I think we are going to see a lot of energy now flowing around that area, obviously that site will be popular and that will also bring business to the other sites in the region."

Near a newly planned boat harbour, Warrigal Care will build the retirment village on Brigantnie Drive, Shell Cove's last remaining large residential lot.