The Queensland Government says the construction of a $7 million poultry farm in the Mary Valley near Gympie, in the state's south-east, will help create local jobs.

ABC reports that the former Labor government bought almost 500 Mary Valley properties for the controversial Traveston Crossing dam but the project was called off.

The poultry farm will be the fourth project secured under the State Government's Mary Valley Economic Development Strategy.

Gympie MP, David Gibson, says the area is a perfect place for agricultural investment.

"It's in a great position, particularly for these type of agricultural businesses where you export into other areas," he said.

"There's a growing demand for free-range poultry meat and the Mary Valley is in a beautiful position to be able to service not just the Sunshine Coast and Wide Bay but also down into Brisbane.

"This is a new agricultural activity to the Valley but it's also a $7-million investment, so that's a shift in our agricultural base but more importantly, a massive investment into the area, not to mention the jobs that will come with it," he said, concludes the ABC report.