Two MIA councils will be included in a co-funding intuitive launch infrastructure projects to curb water loss.
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For the first time, Carrathool and Leeton Shire Councils are being included with 13 other NSW LGAs to roll out the projects.
Local water utilities will be offered up to $150,000 to launch infrastructure projects targeting water loss and boosting efficiency as part of the government's efforts to save 7.5 billion litres per year across the state.
State-of-the-art equipment to better measure and manage water supply networks and train staff on how to keep them running efficiently will be installed, including procuring and installing bulk meters, sensors, real-time monitors and pressure-reducing valves.
It will also aim to help operators zero-in on leaking pipes by funding specialised detection equipment including leak noise loggers, electronic listening sticks and ground microphones.
All projects are expected to be completed by May next year.
Member for Murray Helen Dalton has welcomed the move, which includes Murray River and Balranald councils in her electorate.
"Access to safe and reliable water is a basic human right and this investment in water saving infrastructure will ensure the progress and growth of these communities," she said.
"I was invited to the opening of the new Berrigan Shire Council's town water treatment plant recently and it promises remarkable water wastage and quality improvements."
However she would like to see more done going forward.
"The government needs to look at more water saving measures like these," she said.
"This includes carp control in our rivers, rather than blindly pursuing water buybacks, which we know will destroy the very irrigation communities that these infrastructure funds are aimed at."
Minister for Water Rose Jackson said 15 per cent of water sourced from nature is lost due to leaking pipes or inefficient networks.
"It really adds up," Ms Jackson said.
"This new funding is a game-changer, supporting councils to minimise water losses, up-skill operators and help save hundreds of thousands of dollars.
"At the same time, it's never been more important to boost drought resilience across regional NSW as we prepare for a more variable climate.
"This work has a critical role to play in locking-in a more secure water future for local communities," she said.
It's the latest round of the NSW Government's $12.5 million Regional Leakage Reduction Program, which has so far worked closely with 54 regional councils and Aboriginal communities to save 5.8 billion litres of water per year.