It's hoped a new Special Economic Zone (SEZ) in South Bougainville will bring in outside investors.
Papua New Guinea Communications Minister, Timothy Masiu, who is the MP for South Bougainville, said the new Bana tax-free zone was aimed at encouraging economic development.
All business types would be considered for Bana according to Mr Masiu but a close vetting process would also apply before any were allowed to set up shop in the zone.
Development was vital for Bougainville, he said.
"This is something we really need. Creating opportunities for employment and creating something for Bougainville. Because right now Bougainville has nothing.
"You know we don't have a mine, we don't have fishing projects. We don't have any of these economic activities happening on Bougainville right now," Masiu added.
The South Bougainville MP accepted his constituency would have to develop its infrastructure to make it appealing to investors.
He noted that because the Bana SEZ was one of a series being established by the national government there would be some funding from Port Moresby.