Walcha is one of the biggest local winners coming out of the NSW Budget with $9 million being allocated for a new water storage facility.
The 300 megalitre off-stream dam will be a key measure in securing the towns water security into the future.
Member for Tamworth Kevin Anderson said the security of water is essential for country towns such as Walcha to thrive and to grow.
"Last year Walcha nearly ran out of water during the drought and that can't happen again," Mr Anderson said, "This new dam will secure their water supply going into the future.
Walcha Mayor, Eric Noakes said the funding will be a welcome boost to jobs in the short
the term, and for water storage into the future.
“This is great news for Walcha," Mr Noakes said, "It will go a long way towards removing the uncertainty surrounding Walcha’s water supply, especially in times of drought."
The design phase of the project is already underway and priority will be given to local contractors to complete the construction works.
“It is the most important project for our community in Walcha’s history," Mr Noakes said, "One that we have been developing for over 5 years."
The project was identified as the number one recommended infrastructure project for the Namoi region in the Namoi Region Water for the Future Strategy and identified as a key action in the Regional Economic Development Strategy for the Southern New England.