The small Queensland mining town of Moranbah is rapidly developing a reputation of being the most expensive accommodation location in the country.

The mining boom has pushed rents through the roof and housing prices along with it.

Any sort of half decent three bedroom house in the town commands about $700 a week or more and local hotels and motels are booked out literally six months ahead.

The situation has become so bad the Belyando Shire Council has started construction on a 45-unit complex to try and ease the pain.

The $6 million Belyando Views development will provide affordable accommodation for service industry workers and will be built by Moranbah Constructions at Isaac View Estate in Utah Drive.

Stage 1, which features four two-bedroom units and two three-bedroom units, is expected to be complete by July.

Council also plans to replicate the initiative in Clermont.

Mayor Peter Freeleagus told Stay 247.com he was relieved that Council's project to help keep service industry workers in Moranbah and Clermont was becoming reality.

"The mining boom and resulting accommodation shortage has meant that most service industry workers can not afford to live in Belyando and our towns just can not function without these very valuable community members," he said.

"Council strongly believed something had to be done and so we fought very hard to get this essential project off the ground, raising funds through a levee on Council's new residential blocks in Moranbah and seeking funding assistance from the State Government.''