The comments by the Minister for Justice and Police follow questions put to NSW Attorney General Gabrielle Upton about the possibility of establishing one, at an estimates committee hearing on Thursday.

On Friday, Labor's Shadow Attorney General Paul Lynch issued a media release titled Attorney General says No Drug Court for Dubbo.

"This is bad news for Dubbo," he said.

"I know there were many people in Dubbo who advocated for a Drug Court - from police to lawyers to community members," Mr Lynch said.

"This will come as a bitter blow to many of those advocates."

A transcript of the hearing suggested the government had not ruled out setting up a drug court in Dubbo.

When asked about it by Labor MLC Shaoquett Moselmane, Ms Upton said drug courts in Parramatta, Toronto and the City of Sydney were "doing a good job" and the government would see how they went before rolling them out across the state.

There could be needs in other parts of NSW, she said, so a decision had to be made based on where the need was.

"I have not seen the research but, as I said, I would not rule it out; I would not rule it in," Ms Upton told the hearing.

"I am happy to see the evidence, iNof you are advocating for a drug court in Dubbo, I would welcome that. We can talk about that after estimates."

Ms Upton said while she had "not had personal representations" to her in her Attorney General role regarding setting up drug courts anywhere other than the three existing ones, if there were, a decision had to be made "based on evidence and be able to be funded from the budget".

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"This is always subject to resourcing ...there must be a demonstrated case when you undertake a justice initiative ... because there are many needs with fewer resources than we would like to have," Ms Upton said.

"I am always open to considering proposals that will go some way to address issues of drug addiction and abuse and enable those people who come before our justice system to have a chance at a better life."

In June Mr Grant told the Daily Liberal while it had not been a pre-election commitment, he was "actively working to prepare a business case for these projects (a drug court and accompanying rehabilitation centre) to be funded within my existing justice budget, along with other initiatives being considered by the Minister's Action Group."

On Friday he said drugs such as ice remained a terrible scourge on Dubbo and work was continuing to develop a "whole of government response" to ice.

"I continue to press for consideration of a drug court in Dubbo as part of that response."