Dubbo Regional mayor Ben Shields intends to ask the state and federal governments to provide financial support to regional NSW businesses directly impacted by water restrictions.
He will table a mayoral minute at Monday's meeting of Dubbo Regional Council calling for the governments to help town-based businesses which "can suffer as much as a farm during a drought".
The mayoral minute follows the formation of the Dubbo Green Space Alliance in early October and subsequent contact between its leaders and council staff.
Cr Shields has named turf farms, landscape gardeners, nurseries, pool shops and irrigation specialists as among the businesses losing income as water becomes scarce.
"Locals are not buying turf, people are reluctant to get gardening done, households are not using their pools and irrigation for lawns is certainly restricted," he said.
Cr Shields said restrictions were essential to protect the region's water supply in the drought but businesses needed help.
Level four water restrictions will be introduced into the Dubbo region on Friday.
"Dubbo is home to a large amount of businesses that rely on water," the mayor said.
"Keeping people employed and business open is essential so that when the drought breaks these people will still be around to continue their contribution to the economy."
Cr Shields has also called for extra funding for Evocities, Regional Development Australia and other organisations which promote regional areas.
Last month alliance spokesman Alex White said its aim was to work with "all stakeholders" to counter the detrimental impacts on green space businesses of water restrictions.
On Thursday, council's chief executive officer Michael McMahon confirmed contact between alliance representatives and council staff.
"The industries represented by the Dubbo Green Space Alliance and Dubbo Regional Council both face significant challenges associated with the ongoing drought so it makes sense the two would meet and work towards a common goal on some matters," he said.
"Senior council staff have met with representatives of the alliance and will do so as the drought continues.
"Council appreciates that these are multimillion-dollar industries that contribute to the local economy and generate employment so it is important they are provided assistance to sustain them where possible.
"They are leaders in innovation in their field so there is potential for them to provide technical advice to council."