Jobs will flow from a cash splash at Burrendong Dam which is reported by WaterNSW to be in "unprecedented territory".
A large Australian company, Seymour Whyte, has been awarded the $6.7 million contract to salvage about 16 gigalitres (GL) of water below the dam's outlet valve.
State Member for the Dubbo electorate Dugald Saunders reported on Tuesday of the "well-resourced" company's intention to employ up to 12 local contractors to help get the "urgent drought relief" project completed by February 2020.
He said Seymour Whyte would also buy locally-available equipment and materials "where possible".
"I was very keen to ensure locals are employed and that will be a guarantee as part of this project," Mr Saunders said.
I was very keen to ensure locals are employed and that will be a guarantee as part of this project," Mr Saunders said.State Member for the Dubbo electorate Dugald Saunders
The project includes the installation of new electrical systems, construction of a coffer dam around the outlet valve and pumping station.
It aims to buy Dubbo Regional Council time to increase its groundwater supply with $30 million from the state government.
The pumps would not be activated until Burrendong Dam was at zero per cent capacity, and would send water down the Macquarie River for about four months.
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Currently at three per cent capacity, the dam may also receive a bulk water transfer from Windamere Dam early next year.
Mr Saunders was joined by WaterNSW media manager Tony Webber at its offices in the Blueridge Business Park.
WaterNSW has been warning of the worst-case scenario of Burrendong Dam not being able to provide town water from mid-2020 in the absence of significant rain.
Mr Webber said gradually "restricting flows in the system" seem to be slowing the depletion of water in the dam.
Mr Saunders said while the pumps might not have to be turned on in February the job "needs to be done and ready for action".
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Burrendong Dam's 10-year average inflow is 1500GL a year.
"At the moment we are receiving 1GL a month," Mr Webber said.
"We're on track to get probably 12GL this year if the current trend prevails.
"Last year we got 55 and the previous year 42.
"So we are really in unprecedented territory."