The dredging will improve the river's navigation channels off the Town Green.
Crown Lands expects the dredging will be finished before the Summer school holidays.
Port Macquarie Hastings Council Environment Director Matt Rogers, said the sand will help protect the Town Beach foreshores .
"The nourishment of the beach as part of this dredging program will help restore the dune which runs along the northern part of the beach," he said.
"It's principal function is really a safety function, as during a large storm the waves would overtop the dune and flood the reserve and the caravan park.
"So it's really a safety issue."
Mr Rogers, said the beach is currently in good shape but extra sand's always useful.
"Like all beaches the sand waxes and wanes, and at the moment we've got a lot of sand in the area which is typically used for bathing, where flags for the lifesavers are located," he said.
"So we haven't really got a problem in that respect.
"But any sand that we put on the beach will help long term.
"You link two particular needs to get two great outcomes, so it's really worth pursuing."