Drought affected communities in NSW and Queensland will receive much needed federal funds to help boost their economy as they enter their third year in drought.
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The government is putting together a drought support package to help fund shovel-ready projects to ensure people stay in the community.
Walgett Shire mayor David Lane said he was pleased the government have decided to act.
"Farmers stopped spending 12 months ago. Which has a flow-on affect to the community.
"I've never seen a drought like this. So anything the government can do to help is a step in the right direction.
He described the situation as "dire straits".
"People can't survive without an income."
Mr Lane said local businesses were on their knees.
"Some are laying off staff, and some are close to closing their doors for good. That's the reality."
It is unclear when the package will be available, but Mr Lane said he hopes it is sooner rather than later.
"If it's any more than a few months it defeats the purpose."
He said it looks like there wasn't going to be a wheat season this year for Walgett Shire farmers.
"That means the earliest income for the shire would be in December-January 2016/17."
He said the funds would help support local employment which would help tide over until the rain.
"Nobody is trying to pretend this is the perfect solution.
"Twelve inches of rain is the perfect solution, but that's not in our control."
Representatives from the National Farmers' Federation, NSW Farmers and AgForce QLD met with the Minister for Agriculture, Barnaby Joyce, to discuss the urgent need to better target current assistance measures and expand support to local communities.
NFF president Brent Finlay said he welcomed the proposal to expand drought assistance beyond the farm gate to local governments and small businesses doing it tough in affected areas.
"Many farmers are facing their fourth season without income, which is more than anyone can reasonably expect a business to withstand. This is having a major impact on local businesses and on workers, who may have little choice but to leave town to support themselves."
He said the NFF looked forward to working with the federal government to help resolve these issues.
