Tenders will be called in January for the construction of Dubbo's $10.6 million cross-city pipeline, a project expected to provide the city with greater water security.
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More than 19 kilometres of new pipes are expected to be laid during the first six months of 2020.
"Dual" pipes for the separate movement of groundwater and recycled water will cover eight of the 19 kilometres.
Groundwater, now irrigating recreational areas, would travel to the John Gilbert Treatment Plant in South Dubbo to boost the city's potable water supply.
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Recycled water from the Dubbo Sewage Treatment Plant, about six kilometres to the north, would make its way into the city to replace the groundwater being used for watering.
It could also appeal to big water users who don't need "full potable water" such as Taronga Western Plains Zoo, and be traded for groundwater being used by irrigators.
The cross-city pipeline is the showpiece of a suite of projects being developed by Dubbo Regional Council in response to the drought.
They are being funded with $30 million from the state government.
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"There is no hiding that this drought is different to any in recorded history," council's chief executive officer (CEO) Michael McMahon said.
"Burrendong Dam which feeds the Macquarie River has not experienced its regular fill cycle for an unprecedented three consecutive years and we don't know what's ahead of us in terms of the weather.
"Dubbo Regional Council staff have been working to secure our water supply since January 2019.
"I am happy that council has endorsed our plan to spend the funding and we can now move forward with the execution."
On Thursday, the CEO said the pipeline was in the "final stages of concept design".
The pipework will be installed underground along the road corridor that council manages or on council-owned land.
- Dubbo Regional Council chief executive officer Michael McMahon
"The pipework will be installed underground along the road corridor that council manages or on council-owned land," Mr McMahon said.
"The route and final plan will be released when the tender is advertised from 7 January 2020."
Mr McMahon has forewarned of "localised impacts to residents and businesses as well as to traffic during construction".
"It is expected that the works will be undertaken quickly and the overall impacts minimised," he said.