An expansion of the bore field of drought-hit Dubbo would have to pass through a series of engineering and licensing "hoops" before it gets off the ground.
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Dubbo Regional Council's chief engineer reports the organisation is on the front foot to work towards the water security project.
Dubbo MP Dugald Saunders visited the city's water treatment plant on June 11 to announce $30 million across two years for the council to plan and roll out an expansion of the bore field.
Mayor Ben Shields and council infrastructure and operations director Chris Devitt, both present, welcomed the funding.
The council had already started the process, working with key government agencies, Mr Devitt said.
"So we're working very closely with those people who understand exactly what potential sources might be there so when we do start to get into the detailed work we've got a better than average chance of actually striking the water," he said.
"A lot of science involved in that to understand exactly what might be there and then the process is to start the real work."
Burrendong Dam's level has fallen to slightly more than 5 per cent after a prolonged dry spell.
The city's water supply is made up of a 70 per cent river water and 30 per cent bore water split. Council bores are about 40 to 60 metres deep.
Before a licence to increase the bore water allocation was granted, there would first need to be investigation of the impacts of possible extraction on existing bores, Mr Devitt said.
"...while this is important to Dubbo, there's quite a lot of licensed suppliers out there, so we need to be mindful of their needs as well," he said.
The city needed to play its part as a "good member of the total catchment", the director said.
Infrastructure would also be needed to deliver water back to the city's water treatment plant.
"And again that's where the cost could increase because if we have to go 10, 15 kilometres, then we need a decent-sized pipeline and pumps to get it back here," Mr Devitt said.
"That again is all part of that investigation process..."
The engineer also identified water quality as another potential issue, "depending on minerals in the aquifer".
"So it may be good water but requires a lot of treatment that adds to the cost as well, and from that we need to work through all of these issues before we can pull this together," Mr Devitt said.
"So there's a lot of hoops to jump through, we're up for it, and I think the key is to collaborate successfully with our friends in the state government to get us through this."
Mr Saunders commended the council for its proactive approach.
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