Construction is underway for a 1000-bed quarantine facility in Toowoomba in southern Queensland.
Premier Annastacia Palaszczuk announced the news at this morning's COVID-19 press conference.
"If we want to open Australia up, if we want to open to our state up, regional quarantine facilities are the answer," she said.
"As soon as a regional quarantine facility is built, we are ready to put it to use."
It will be the first regional quarantine facility to be built after the Northern Territory's Howard Springs.
Deputy Premier Steven Miles said 500 beds are expected to be available by the end of the year, growing to 1000 in the first quarter of next year.
The news comes as Queensland records zero locally acquired cases of COVID-19 and two overseas acquired cases in hotel quarantine.
There were 12733 tests conducted yesterday and 21,251 vaccines were administered yesterday.