Community to foot 'huge bill' if Dungowan Dam doesn't go ahead, says Tamworth Regional Council mayor

That's according to Tamworth Regional Council mayor Russell Webb, who said if the billion-dollar dam doesn't proceed, then as the existing owner council will have to fork out for multi-million dollar upgrades to the aging infrastructure.

"There's still a section of pipeline between the Dungowan village and the old dam that is quite old and needs replacing, and that would then become the responsibility of council," he said.

"The government wouldn't be funding that pipeline, so the council would have to fund that. That's probably somewhere around $80 million, and maybe a bit more."

The second challenge for the council is the old Dungowan Dam infrastructure isn't stacking up to state dam safety standards, and Cr Webb said while that isn't a problem now, it will be in the future.

"We've bought the land directly below that dam, and at the moment that's not a challenge, but moving into the future, we're going to have to spend many, many millions of dollars to upgrade that dam to meet standards," he said.

"So all in all, if the new dam doesn't get built, the community within the local government area of Tamworth will be facing close to a $150 to $200 million bill to firstly complete the second stage of the pipeline, then upgrade the dam to meet the dam safety standards.

"That's a huge bill, and that will have a huge impact on the Tamworth Regional Council and its ratepayers."

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On Tuesday night, a recommendation will go before council to request the new dam, if built, be owned and operated by Water NSW.

But, council wants to own and operate the new Dungowan pipeline after it's constructed and connected to the Calala Water Treatment Plant.

Cr Webb said it "just makes sense" for the council to own the pipeline, but not the dam, due to "insurance challenges".

"It would be a lot better, and a lot more sensible for NSW Government through NSW Water to own and operate Chaffey Dam and the new Dungowan Dam," he said.

"If they take ownership and operational control of the new Dungowan Dam, they would then release water from both the new dam and Chaffey Dam as required and as ordered by the council.

"It will be up to the government if that resolution passes tomorrow night to determine whether or not that's acceptable for them.

"But in the real terms, we've got the experienced people here to look after the pipeline and operate it, so it's far better for us."

Councillors will vote on the recommendation on Tuesday night.

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