The money will fund development of a business case for the proposed upgrade of the Nyngan to Cobar pipeline.

Federal Member for Parkes Mark Coulton believes the pipeline project has the "potential to secure Cobar's future".

READ ALSO:

"This announcement is a significant first step to ensuring the future growth of Cobar that represents a region rich in resources," he said.

"The current pipeline and pumping stations are the sole source of water supply to almost 4000 locals, and the assets are nearing the end of their design life.

"A pipeline upgrade would not only provide long-term regional water security and drought resilience for the region, but will help create economic stability so that the community can keep enjoying Cobar's lifestyle."

The $1 million will pay for preliminary geotechnical investigations, a detailed concept design, environmental and heritage assessments, and procurement strategy and cost estimates.

The federal government has allocated $22.3 million for the development of business cases for eight water infrastructure projects including the Nyngan to Cobar pipeline.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, Michael McCormack, said the business cases would inform more investment in new water infrastructure as part of the National Water Grid investment pipeline.

"We have already committed more than $1.5 billion to over 20 water infrastructure projects with a total construction value in excess of $2.6 billion," he said.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: