Tamworth mayor Russell Webb all but concedes council shouldn't own new Dungowan Dam

Cr Webb told the Leader that the half-a-billion dollar facility could actually prove a financial liability on the council's books.

"I think, in the longer term, we're not dam managers," he said.

"Financially and operationally. I think there'd be too many challenges there. I think we'd be left wishing we didn't own it in time to come.

"I believe that the best outcome for our community is for the dam to be owned and operated by the state."

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Tamworth Regional Council owns the existing Dungowan Dam, which was built in the 1970s, and is much smaller than the proposed new one.

The ownership issue has long been a major question mark hanging over the new dam project, with former mayor Col Murray declaring in 2019 that keeping the facility would be "our first choice".

Water minister, Tamworth MP Kevin Anderson, has yet to clear up the state government's position with regard to ownership.

Mr Anderson announced that the project finally had a business case on Wednesday, two years after the fast-tracked project was announced. The document, which is currently secret, will detail ownership.

Cr Webb said the pipeline from the dam might be owned or at least operated by council, even if Dungowan itself was owned by the state government.

He said the council wouldn't necessarily give up control over water supply by losing ownership of the dam, because they're heavily constrained by legislation in how they would operate it.

A spokesperson for Tamworth council said the body had conducted "lengthy discussions with all levels of government about the Dungowan Dam project as a whole," but has yet to adopt a formal position regarding dam management.

"However, Council recognises the cost implications of owning an asset of this scale," the spokesperson said.

"The agreed usages of water stored in the new dam will determine which level of government is required to own and maintain Dungowan Dam.

"Local government does not currently possess the legislative powers to control flows that are not solely for Council's own purposes, such as the release of water for irrigation or environmental management."

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