Last September the council reported of Jonishan Pty Ltd digging a trench for the $6.82 million cross-city pipeline at Yarrandale Road.

This week it pointed to work underway at the corner of Boundary Road and Macquarie Street and advised of "last stages of installation".

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The 19-kilometre and underground pipeline will help keep water flowing into homes and businesses during severe droughts for the next 50 to 100 years.

It will take non-potable groundwater from bores used to irrigate recreational spaces to the John Gilbert Water Treatment Plant to boost supplies of potable water.

The dual pipeline also will move recycled effluent from the Dubbo Sewage Treatment Plant into the city to replace the non-potable groundwater.

The council's chief executive officer Murray Wood said the pipeline would be an "invaluable piece of infrastructure" during the next drought.

He said the region had been "hard hit" by consecutive years of extreme drought.

"We saw a huge economic and social impact on our communities as a direct result," Mr Wood said.

"The cross-city pipeline will ensure council has the security and the confidence to provide water, an essential resource to our residents and businesses, in times of severe drought."

The pipeline, new bores and extra groundwater entitlements were covered by $30 million from the state government's Safe and Secure Water Program.

Director of Infrastructure Julian Geddes said the pipeline was key in connecting bores to the water treatment plant.

"The final stage of this part of the project involves a lot of infrastructure testing," he said.

"The pipes are filled up with water and must maintain a consistent volume and pressure to ensure there are no leaks within the network.

"So far we have had no issues passing these milestone tests."

Repair of roads damaged in the construction of the pipeline is scheduled to begin next week.

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