Local businesses will likely suffer "irreparable damage" unless they get financial assistance in the drought, says mayor Ben Shields.
Dubbo is currently on level four water restrictions. As a result, the mayor is calling for government assistance not for farmers, but other businesses that are also suffering, such as the horticulture industry and pool shops, because of the city's decrease in water usage.
"We need to make sure that our businesses, despite what is going on with the unprecedented drought, despite us having and being forced to go into water restrictions, remain viable. Long term economic forecasts for our city will be a lot better served if we can keep our businesses continue to function during this drought," Cr Shields said.
The Dubbo Green Space Alliance member and turf supplier Alex White said the horticulture industry - which employs 200 people in Dubbo - had been hit hard.
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"A lot of the people involved in horticulture in Dubbo are small, local businesses that are trying to put their money back into the local community and local sporting teams," he said.
But Dubbo's horticulture industry is focusing on solutions, rather than focusing on the "doom and gloom" of level four water restrictions.
"There's been a lot of negativity to date and this negativity only serves to damage the reputation of Dubbo as well as business and the community," Mr White said.
"The only way to get though this is to band together and work together to find results that help everybody."
Cr Shields thinks it's time for the state or federal government to intervene.
"I'm also concerned about the long term economic situation regarding the drought, particularly within Western NSW. There will need to be an economic rebuild after this drought," he said.
"Once the drought ends, and it will end, there's no doubt about that, we are going to need, as inland NSW not just as Dubbo, we're going to need to say in one loud voice that we are a great viable place to invest in..."
The mayor said anecdotal reports had come in suggesting potential new businesses were being driven away because of fear they would have no water.
"Without intervention, there is a real possibility of irreparable damage to local businesses. The long term economic recovery of the region will be much harder if these businesses are not assisted," he said.