About two million fish will be saved and numerous jobs created as part of a NSW government package announced in Dubbo on Wednesday.
A $13.5 million package will allow for state-of-the-art irrigation screens to be installed along the Macquarie River.
The project will deliver fish-friendly irrigation pumps between Dubbo and the Macquarie Marshes, including at Narromine, Trangie and Warren.
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"This program of works will ensure 70 per cent of extracted water is screened, clean and fish friendly, saving more than two million native fish every year in the Macquarie River," Mr Marshall said.
"Farmers will see significant benefits from using modern screens on their pumps, saving them water, time and money whilst also contributing to the health of the river system."
Dubbo MP Dugald Saunders said the project would create jobs in the central west, with a strong focus on using local expertise, including businesses supplying components, transport and logistics.
"This project will help local water users reduce their operating costs, as the fine mesh and self-cleaning mechanisms of modern screens keep most debris out of irrigation lines and prevent damage to pumps, blocked sprinklers and clogged filters," he said.
The project will deliver large-scale, long-term benefits to native fish populations in the area including Murray Cod, Golden Perch, Silver Perch and Eel-tailed Catfish.
Construction is expected to begin next year.