The corner of Spurr Street and Prowse Road is the state government's preferred location for a police station in Capel.
Police minister Michelle Roberts and Collie-Preston MLA Mick Murray were at the site on Thursday to make the announcement saying the plans would be discussed at a public consultation meeting.
The state government have committed $8 million to the development which was an election promise made by the McGowan Government.
Police minister Michelle Roberts said the funding was allocated in the budget and they should be able to deliver the station by mid-2020.
Ms Roberts said once the station was built police would be based in Capel which would reduce the amount of time officers currently responded to incidents which could take more than 30 minutes.
"For the first time here in Capel there will be locally based police officers and a brand new station," she said.
"Officers will be based here and if you need them you will get a much faster response time."
Ms Roberts said although Capel was not a high-crime area, it was not possible to build a police station in a moments notice if crime spiked.
"Most communities enjoy having a strong police presence, and there is always a balance of deploying officers from a central location or having a local police station," she said.
"When Dunsborough Police Station was first mooted people questioned whether Dunsborough needed a police station, by the time it was opened people said, why was it not built twice the size.
"People have seen growth spurts in the South West, there is clearly already a lot of growth in this Bunbury region and we expect there to be more."
Collie-Preston MLA Mick Murray said the Capel Police Station would provide the missing link for the South-West and complement the surrounding shires.
“For many years, the people of Capel have been without a police presence so I am pleased that this project will make our regional communities safer," he said.
Mr Murray said with any site there was always debate about where it should be located and encouraged people to attend a public meeting to find out why the site was preferred and how the project would be delivered.
"This area is central to help other police stations and work together in a community sense, Dalyellup is over there, Peppermint Beach, Busselton, Boyanup, Dardanup and Donnybrook."
Residents and business owners in Capel are encouraged to attend a community consultation meeting at the Capel Community Centre from 5.30pm on Thursday, February 21.
WA Police representatives will be on hand to provide information on the station design, local opportunities and benefits to the community and operational policing.
Any questions about the station can be submitted to WA Police by emailing Capel.Police.Station@police.wa.gov.au, which will be discussed at the meeting.