Taggle Systems, the company selected to install smart water meters across the Dubbo region, is "training local contractors".
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Dubbo Regional Council's $5 million project came to a grinding halt in August when workers had to return to Victoria because of "health and border restrictions".
Five zones have been created for the rollout with zones 1 to 4 covering Dubbo.
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The rollout resumed this month in zones 1 and 2, and will extend into zone 3 before workers take a break at Christmas.
They will return to work mid-January with the project still scheduled for completion in June 2021.
Council's manager water supply and sewerage, Stephen Carter, reports Taggle Systems has begun "training local contractors".
"The benefits of having a local contractor to help with the rollout are numerous, and they will help minimise impacts of any unforeseen disruptions," he said.