Dubbo Regional Council is set to fork out about $150,000 to save and reuse backwash water at the John Gilbert Water Treatment Plant in Macquarie Street.
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Chief executive officer (CEO) Michael McMahon will report to Monday night's council meeting of works that will enable about 250 megalitres (ML) of water to be "recycled back through the plant" annually.
"The existing water treatment process at the John Gilbert Water Treatment Plant in Dubbo involves the discharge of around 300ML of relatively clean process water each year," he said.
"Around 50ML of this water is utilised for open space watering.
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"The remaining 250ML can be recycled back through the plant with a relatively minor reconfiguration of pipes and valves.
"This work will be undertaken as a matter of priority at an estimated cost of around $150,000."
Mr McMahon will also advise councillors on efforts to reuse effluent, a key component of a new water security strategy.
"The detailed design of a network of pipes which would allow a portion of the treated effluent from the Dubbo wastewater treatment plant to be redirected for alternative use within the city, is currently being developed," he said.