Tamworth mayor Col Murray has welcomed the Australian Government's doubling of the cash already promised to build Dungowan Dam.
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Announced yesterday by Deputy Prime Minister Michael McCormack, Dungowan and Wyangala dams get an additional $283.5 million in capital grant funding.
This instead of previously arranged loan agreements with the NSW government.
Cr Murray said it was an "expected" but "stronger" statement from the government, shoring up pledged funds for the Dungowan dam to $242 million.
The project is currently undergoing an inquiry, with one key line of questioning looking at the rationale of the project.
While there's been no firm word on the dam's ownership or how water sharing plans will accommodate the new supply, shovels are expected to hit the dirt next month.
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But Cr Murray said this latest funding announcement "feeds into the process".
"We haven't seen how the water sharing plan will unfold," Cr Murray said.
"[But] we are better understanding the commitment to increase the water security for the city and that is what we've been lobbying for."
