Griffith mayor John Dal Broi has identified Lake Wyangan as one area benefiting from the city's "generous" water allocation.
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In previous years council has injected 1500 megalitres into the lake to help maintain the water level.
In 2018, council opted to inject only 300 megalitres of that year's lake allocation into the lake and sell the rest in order to help fund a long-term solution to the blue-green algae issue before resuming a full injection of 1500 megalitres in 2019.
Cr Dal Broi said the decision to inject the water into the lake is for the benefit of the community and only possible through the allocation of water they have negotiated with the NSW government.
"That saving is going into Lake Wyangan," he said.
"The community has told us to bring Lake Wyangan up to that standard.
"If we didn't have a generous allocation we couldn't do that."
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Cr Dal Broi said any potential water restrictions put forward by council would likely result in a re-examination of the yearly injection into Lake Wyangan.
"If we put restrictions in, shall we keep pumping that [water] into Lake Wyangan?" he said.
Temporary water in the Murrumbidgee Valley is priced around $750 per megalitre meaning council could earn approximately $1.125 million selling the water.
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