High level designs are complete for the much anticipated work on Malpas Dam.
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The plan will see the dam's wall raised by five metres and double the reservoir's capacity to 26,000 megalitres to drought proof Armidale's water supply into the future.
Armidale Regional Council Mayor Simon Murray said council had an indicative costing for the construction, which was at the upper end of $40 - $60 million.
"We are now moving to detailed design, and I think by the end of this year we will be tendering out the works to get it done," Cr Murray said.
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"That is subject to the State government confirming it is going to provide the funding for the raising of the wall.
"This is a necessity. We wouldn't like to have to go through another drought like this, where we're running around, trying to make a diminishing supply last as long as we can."
Cr Murray congratulated council staff for the work it had done on the project to date.
Member for Northern Tablelands Adam Marshall said the project had the strong support of deputy Premier John Barilaro and deputy Prime Minister Michael McCormack and was called for by the community.
"There is a strong appetite to get diggers on the ground and projects like the upgrade of Malpas Dam underway, so when the big rains come again we prepared to capture it," he said.
"With communities like Guyra soon to be without water, I felt it was important to sit down with Mr McCormack, the Minister for Agriculture Bridget McKenzie and Drought Minister David Littleproud personally to lobby for their support.
"It may cost upwards of $40 million, but I think that will be money well spent if it results in long term water security for communities in the lower-half of the Northern Tablelands."
Mr Marshall said he knew council did not have funding to put toward the project, and it was why he lobbied both levels of government.
"I am looking forward to working with council and NSW Public Works Advisory, to dust off the original designs for the dam, revamp the proposal with costings and put forward a business case to the State and Commonwealth Governments," he said.
