Surveyors have started work on the project which is estimated to cost $2 million and which will treat water flowing into the northern lake.

Griffith City Council mayor John Dal Broi said around 11 hectares next to the lake would be dedicated to the natural water treatment system.

Last week, councillors voted to award the tender to create the system to Woodlots and Wetlands Pty Ltd.

Councillor Dal Broi said the plan to create the sediment and nutrient treatment system followed extensive consultation and research.

"It's the result of a lot of information gathered in the last three years," Cr Dal Broi said.

He said council had commissioned Melbourne-based company, Water Technology to investigate what could be done to control blue-green algae without negatively affecting the recreational uses of the lake.

"The report identified the cause of the sediment and nutrients coming into the lake. It's historic flows of water that comes off irrigation properties in the vicinity," he said.

The adoption of more efficient technology like drip lines meant less water water found its way into the lake.

The Lake Wyangan Catchment Management committee formed in 2016 - made up of stakeholders, water experts and community members had the chance to examine proposed plans.

"Any funds that are spent out there is Griffith ratepayers' money," Cr Dal Broi said.

"We did go to the MDBA requesting them to get involved, since it's a substantial body of water, we asked for environmental water," he said.

When that request wasn't granted, it meant any water delivered into the lake to raise the level comes from the council's own water allocations.

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The report's findings helped form the basis of an expression of interest process to find people willing to work on the problem.

Those EOIs were examined by the management committee and council before a tender process was started in 2019.

"There were two tenders with designs of how the water could be improved and also control blue-green algae," Cr Dal Broi said.

The successful tender will see five hectares dedicated to removing sediment from the water arriving into the lake, and then another five hectares with water plants that will be used to reduce the level of nutrients in the water.

The work is focused on adding to the lake, and not reducing the size of the lake for recreational users.

Cr Dal Broi said there would be some pumping involved in creating the plan but the ongoing costs would be minimal thanks to solar panels.

"We have to do it, there's no state or federal funding, if we don't do it, it doesn't get done," he said.

During a council workshop meeting on Tuesday night, Woodlots and Wetlands gave a presentation to council and the Lake Wyangan Catchment Management committee on the full-extent of the project.

Council staff visited the lake on Tuesday morning to test oxygen levels and temperature levels.

"The temperatures and oxygen levels are sustainable for fish," Cr Dal Broi said.