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Olympic champions Jess and Noemie Fox will have an island at Penrith Whitewater Stadium in Western Sydney named in their honour.
The section, in the heart of the stadium, will be renamed 'Fox Island' in recognition of the family's contribution to the sport.
The two sisters won three gold medals between them in the Paris Olympics across kayaking and canoeing events.
Jess Fox is regarded as the most decorated canoe slalom athlete to date, and was Australia's flag bearer in the opening ceremony in Paris.
"I remember being a six-year-old in the stands for Sydney 2000 and an 11-year-old in the stands when the World Championships were here in 2005, so to have that legacy 20, 25 years on, for me it means so much," Jess said.
Jess Fox is regarded as the most decorated canoe slalom athlete to date. (ABC News: Sean Tarek Goodwin)
The announcement comes alongside a $3.2 million funding boost to Paddle Australia, ahead of the International Canoe Slalom World Championships being hosted at the Penrith Whitewater Stadium in just over a year.
"We know Penrith is primed to provide fans of our sport and Western Sydney locals with that same incredible atmosphere," Jess said.
The federal and NSW state government have both contributed to the funding injection.
"The Paddle Championships is another major international competition on our green and gold runway to the Brisbane 2032 Games," Federal Sport Minister Annika Wells said.
"The Fox family are incredible ambassadors not just for their sport but for sport full stop and deserve the Fox Island honour for all they have contributed to Australia."
NSW Premier Chris Minns (right) announced the state, in partnership with the federal government, would provide a funding boost to Paddle Australia. (ABC News: Sean Tarek Goodwin)
NSW Premier Chris Minns said the success of the Fox sisters was a win for Western Sydney.
"A large part of Australia's most successful Olympics performance in history came down to two girls from Penrith, Jess and Noemie Fox, who honed their skills through countless hours on the rapids here at Penrith Whitewater Stadium," Mr Minns said.