Tamworth State of the State Leaders Forum 2022: water security options explored with Dungowan Dam's future on hold

Tamworth MP and NSW Minister for Lands and Water Kevin Anderson told a business leader's forum on Thursday, the government "can't just put all its eggs in one basket".

Mr Anderson and Tamworth Regional Council (TRC) are still waiting for a reply to a sit-down meeting request with the new Labor federal water minister to discuss the future of the dam.

The project remains on hold, pending a 50 per cent co-contribution from the federal government, but in the meantime $600 million in state funds is sitting in reserve ready to pour into the project, Mr Anderson said.

"It does keep me awake at night, it really does. This is why we've got to continue to press the federal government with their commitment," he said.

"I went in and got a bloody nose on behalf of our community, and got $600 million reserved in a tight budget.

"That $600 million is sitting here, reserved, pending the funding from the federal government. That's our next challenge."

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One of the other major water security projects in the pipeline is a purification plant for Tamworth which would use reverse osmosis to recycle saline effluent from abattoirs to produce high-purity water for industrial use.

TRC has completed a strategic business case for the project, which is expected to cost close to $100 million.

Mr Anderson said the plant would be vital for the region's future.

"This is vital, not just to serve abattoirs and others out in Taminda, but it is about the future water security for our city. We need options," he said.

"There needs to be a focus and investment on recycling and conservation when it comes to water security - we need to be flexible with our future plan."

The NSW government will soon release the Namoi Regional Water Strategy, which will outline proposed measures for water security in the region.

But preparation works for the new Dungowan Dam have not come to halt, Mr Anderson said, even though the new federal government has not yet come to the table.

Mr Anderson said the Environment Impact Statement is approaching public display, and early works continue.

"I've made sure that parts of the Dungowan Dam project have been brought forward, including the pipeline and plans for early works," he said.

"I've got a meeting way out west with the federal minister on Wednesday next week where will talk all things Murray Darling Basin and water security - and I will advocate for Dungowan."

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