The drought ravaged town of Murrurundi could be taken off level 6 water restrictions in a matter of months as work on a crucial pipeline progresses.
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The Upper Hunter Shire Council is predicting the pipeline to Glenbawn Dam will be completed by mid-2020.
Workers have completed more than 30km of the 40km pipeline.
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Once the build is finished, communities in Blandford, Parkville and Wingen will have access to a town water supply for the first time.
The pipeline project is estimated to cost $14.2 million, with more than $13 million provided by the NSW government.
The council has received a $4,444,000 grant subsidy from the government for the water supply systems for Blandford, Parkville and Wingen and a new, larger reservoir for Murrurundi, dependent on a business case.
Earthworks are completed on the pump station sites in Scone, Wingen and Murrurundi, and the sites at Wingen and Warlands Range where there will be 450,000 litre tanks built.
The pump stations and water tanks will be able to move two megalitres of water a day up the range between Scone and Murrurundi.
The work between Scone and Parkville will cause some delays on the New England Highway.
Mayor Wayne Bedggood thanked the 30 land owners who have allowed access to their properties to put in the pipeline.
"Many landowners have let us know how pleased they are with the remediation work done on their land," Cr Bedggod said.
"Also, a number of unsealed roads are in better condition after the pipeline work than they were before."
Upper Hunter MP Michael Johnsen said the pipeline and village connections are part of the government's ongoing commitment to water infrastructure for regional communities through the water security for regions program and the new $1 billion safe and secure water program.