The $7 million complex will house at least 1.6 million native fish on the 170-hectare property annually, that will eventually be released into Victorian waterways.
But there's potential for the fish hatchery to serve as an economic boost for the region.
State Member for Shepparton Suzanna Sheed said she hoped the fish hatchery could become a tourist spot.
Victorian Fisheries Authority native fish hatchery project director Anthony Forster said there had been discussions put in place to build a $3 million facility.
"We've come up with a concept plan for a modest tourism facility at the front of the property," he said.
"All of the concept plans have been developed; fully costed. It will be a wetland facility and a great day out for all families.
"We want to tell the deeper story behind the fish farm. We want to talk about the deep indigenous culture of the landscape, the origins of native fish, how our rivers have changed and how we're starting to turn that around."
The fish hatchery will employ 20 people, 50 per cent being indigenous, with tourism opportunities that can open up in the future, which are subject to further government funding.
Stage one includes building 32 ponds and it could double if stage two goes ahead.
Mr Forster said there were further hopes the Ross Rd site could expand to a stage three.
Victoria will stock 8 million fish in 2021, however many of those are not bred in Victoria, requiring authorities to purchase many them from other states.
Victorian Fisheries Authority chief executive Travis Dowling said the Arcadia fish hatchery would begin to eliminate that process and ensure the native fish were bred in Victoria.
"We're producing approximately 1 million fish up near Snobs Creek (near Eildon) so basically the rest we're having to purchase some through fish providers in Victoria but certainly from a number of fish farms in NSW; because that's where a number of fish production has occurred," Mr Dowling said.
"By building this hatchery we hope that in the future that all fish that are stocked in Victoria, will be grown in Victoria.
"The economic benefits stay in Victoria and the jobs stay in Victoria."
Mr Dowling said purchasing a Murray cod from NSW cost on average $1, while Golden perch cost 50¢.
"Initially this hatchery will be stocking between 1.5 million to 2 million fish, that's in the first 32 ponds; that's stage one and we're hoping on further stages," Mr Dowling said.
"As we continue to build it we'll move to 5 million, to 7 million fish a year being grown and stocked in Arcadia."
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