Dubbo Hospital renal nurse manager Gail O'Brien's research project could inform the future construction of new dialysis units within the Western NSW Local Health District.

She estimates that 700,000 litres of water a month could be saved across the health district if water which does not pass the ultra-pure test for dialysis was recycled.

Mrs O'Brien's research project was one of nine finalists at the health district's first PITCHit event this year.

Money provided by sponsors was handed out to finalists as part of a bid to support and encourage research and innovation by health district staff.

"I asked for $3000 and they gave me $10,000," Mrs O' Brien said. "I was pretty chuffed."

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Mrs O'Brien said water was "essential" to dialysis.

"That water has to be ultra pure so it has to go through a system of filters and softeners and what's called a reverse osmosis unit," she said.

At that point water which did not pass the ultra-pure test "goes down a drain and is wasted", the nurse manager said.

Mrs O'Brien reports of patients having renal dialysis at home using two rainwater tanks to reuse rejected water.

"It goes back into a water tank, gets mixed with the other water and gets used again and again," she said.

"My pitch was if we can do it at home, can we do it in hospitals as well and what would that cost to set up."

The PITCHit finalist expects a "separate drain" would be required along with tanks and a system to "pump it back through".

"If we can't actually use it again in dialysis at least we could put it in storage tanks that someone might be able to come and collect and use," Mrs O'Brien said.

"It could be taken by farmers for stock or sold to the council to water their gardens or things like that."

As part of her research, Mrs O'Brien intends to speak with experts and tradesmen in Sydney.

"I guess I would like to focus on some of our smaller units that do dialysis out here," she said.

"Like Walgett for example, because they are probably at risk of running out of water at some stage if this drought keeps up."

But she cautions that it may be "too hard and too expensive" to change long-established units.

Renal dialysis is offered at Dubbo, Orange, Bathurst, Forbes and Cowra hospitals and 10 other smaller facilities.

"We did 1400 dialysis treatments in the local health district in June which is quite a lot," Mrs O'Brien said.

The nurse manager reports that the new renal unit at Dubbo Hospital will have a "central reverse osmosis unit" which will be "much more water efficient" than multiple small units currently in use.

"We will save water just by moving into our new unit at the end of this year," Mrs O'Brien said.

She said the new technology suggested "companies are starting to think about saving more water too".