The Commonwealth will grant Griffith City Council $3.475 million from the National Water Grid Connections program will flow into the lake in a bid to improve water security, and sustainability.

Following a mass fish death at the lake with no clear cause identified Griffith City Council began a $2 million project to improve water quality.

The government funded project, which will also see Griffith City Council contribute, will see Lake Wyangan linked with Griffith's water reclamation plant.

Over five kilometres of pipes will be laid to make the linkage and Senator Perin Davey said additional infrastructure, including UV disinfectant technology, which would allow water quality to be improved in the lake, as well as making it easier to keep water moving.

"The water is reclaimed and treated so it's good quality but it can pumped into the lake and pumped around the lake," she said.

Ms Davey said it was "common sense, practical idea" that comes from a local council, which is a win for the environment, for recreational users and for farmers who use water from the lake.

"Water is important to the environment and regional communities and this $3.475 million investment from the federal government into Lake Wyangan will improve water security and reliability, whilst creating jobs," Ms Davey said.

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Ms Davey said the investment would help re-invigorate Lake Wyangan as a recreation area.

"With onsite facilities like a free boat ramp and jetty, it is important we continue to invest in projects that not only bring tourism to regional areas, but improve water quality and ensure sustainability in our water grid for many years to come," she said.

The National Water Grid is planned as a series of water storage and distribution solutions aimed at creating a predictable water supply to support agriculture and regional resilience.

Deputy Prime Minister Barnaby Joyce said the grid focus on developing smaller scale projects over two years to support economic activity, with around $3.5 billion to be spent.

Mr Joyce said the grid would support a further 7000 hectares of irrigable land and around 13,000 customers expected to benefit from improved access to water.

"Up to 1175 jobs will be supported during construction, with over 2550 ongoing and up to 500 more seasonal jobs set to be created nationally."

Construction on the Lake Wyangan project is planned to begin in February 2022 and completed in 12 months.

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