After a 12 year pay freeze, hourly rates of pay for private lawyers who appear in Legal Aid NSW cases will increase from $150 to $195.
The $45 per hour pay rise will be introduced gradually during the next four years and is part of an $88 million funding boost the NSW government has announced.
It comes after the legal community repeatedly asked for more money and some lawyers threatened to withdraw services if pay rates were not adjusted.
"Drought affects the whole community and our local law firms are no exception...this boost will ensure more people in the bush have access to legal representation," state Member for Dubbo Dugald Saunders said.
Law Society of NSW President Elizabeth Espinosa welcomed the government's announcement.
"Our regional solicitors, who are trusted advisers and a crucial component of close-knit towns and rural communities, are well aware of the impact of this drought and many have been providing many hours of pro bono service in the absence of adequate Legal Aid funding," she said.
Attorney General Mark Speakman said the government had doubled Legal Aid funding since it was first elected in 2011.