Contractors have needed more time to tender for Dubbo's cross-city pipeline because of its "complexity".
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Dubbo Regional Council called for tenders for the signature project of its water for the future strategy in early January.
Contractors had until February 18 to lodge tenders but the closing date was moved to March 3 at their urging.
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"The closing date was extended by two weeks at the request of contractors interested in submitting a tender due to the complexity of the project," the council's director of infrastructure Julian Geddes told the Daily Liberal.
The multimillion-dollar pipeline is one of several water infrastructure projects being undertaken by the council to increase groundwater supplies.
It is using $30 million in state government funding to ensure Dubbo has water should Burrendong Dam run dry.
The pipeline will bring recycled water from the Dubbo Sewage Treatment Plant into the city to replace non-potable groundwater used for irrigation, and in turn take the groundwater to the John Gilbert Water Treatment Plant.
About 500 megalitres of groundwater will become drinkable.
The council also hopes the pipeline can help provide big water users who don't need "full potable water" with recycled water, and make it possible to trade it for groundwater belonging to irrigators.
Its ambition for the pipeline extends to the storing of recycled water in the Upper Macquarie alluvial aquifer.
The underground pipeline will be installed on council-owned land or along a road corridor it manages.
