In November the council told of its intention to roll-out smart meters to 17,700 homes and 2300 businesses in the region.

"The whole intent of a smart meter system is to provide accuracy, efficiencies, awareness and, if/when required, education and compliance," chief executive officer Michael McMahon said at the time.

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Users of the Daily Liberal's Facebook page have been calling for rainwater tanks and grey water tanks instead of smart meters after a Dubbo resident described the planned 2020 roll-out as a "big brother" move and waste of money.

In a statement issued on Thursday, Mr McMahon said there would be no public consultation or redirection of budgeted funds.

"..following a successful trial on council assets, council will be updating its ageing water meter fleet with new and improved infrastructure across the region that has the ability to provide the customer with invaluable data and in addition reduce operational costs for the organisation," he said.

Mr McMahon said the council owned the meters and legally could do with them as it wanted.

The state government is being asked to fund half the cost of the smart meter project which could be as much as $4.54 million in total.

The CEO said the new meters could help households "get closer" to the level four water restrictions target of 280 litres (L) per person per day.

In the week ending Sunday, Dubbo residents used 348L per person per day.

The council continues to promote the ability of smart meters to quickly detect leaks which can "save money and possibly prevent property damage".

Mr McMahon has also reminded residents of the council's "staged" rebates scheme.

"In early 2020, council will be introducing a new water-saving rebates scheme for residents across the local government area," he said.

"The scheme will be staged and firstly provide rebates for items such as timers for outdoor watering and water saving shower heads."