The Bogan Shire Council will receive another $4 million from the NSW Government for a 15 kilometre pipeline to help secure local water supplies.
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The funding is in addition to more than $5 million already provided to improve long-term water security for the community during droughts.
The pipeline will run from a groundwater bore to the Nyngan Water Treatment Plant to help secure water supply for the residents in Nyngan and the surrounding area.
Minister for Water, Property and Housing Melinda Pavey said currently Nyngan residents rely on water from Burrendong Dam, which dropped to a low of 1.7 per cent capacity as a result of the most recent drought.
"While the drought situation has improved, Nyngan needs a longer-term solution to ensure they have access to a reliable water supply," she said.
"The NSW Government funded a successful search for alternative groundwater sources to supply the town and now the council has found a suitable location, we will fund the construction of a pipeline to supply water to the community."
The Bogan Shire has received more than $9 million in water-related funding since the start of the drought.
An upgrade of the Albert Priest Channel from Burrendong Dam to Nyngan has been completed along with other repairs to councils off-river storage.
The Nyngan community has also benefited from infrastructure and operational works undertaken by WaterNSW to extend the operations of the Macquarie River to towns and high security water users.
Despite recent rain, 93 per cent of NSW remains drought affected.
Bogan Shire Council is expected to begin works on the new pipeline by June 1.
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