NSW Government secures additional funding for new Dungowan Dam

Media release | 4 April 2022

NSW has secured additional funding of up to $433 million from the Commonwealth towards the costs of the planned New Dungowan Dam in Tamworth to maintain town water supply and water for irrigators and landholders.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said it was a monumental day for Tamworth and the Peel Valley.

“Water is wealth and dams are the banks that drive regional Australia, supporting the growth of our cities and towns,” he said.

“The Nationals have put up to $433 million in additional funding on the table to build Dungowan Dam because we believe in the project and we believe in the region it will support.

“Without water, our town stops. The coffee shops and hairdressers won’t open, the abattoirs will shut down and all of the industries that underpin our standard of living will disappear.”

This commitment takes the Australian Government’s total funding contribution towards Dungowan Dam and Pipeline to up to $675 million including prior funding for field and ancillary works.

Acting Premier and Minister for Regional NSW Paul Toole said the NSW Government is getting on with the job of building dams.

“This is a significant step forward for the New Dungowan Dam project,” Mr Toole said.

“The construction of the New Dungowan Dam and pipeline will create hundreds of jobs and generate millions of dollars for local businesses over the next few years which is great news for communities around Tamworth.”

Member for Tamworth and Minister for Lands and Water Kevin Anderson said the NSW Government would continue to work towards securing the approvals needed to reach the final investment decision.

“This $1.28 billion project would be funded by the NSW and Commonwealth Governments 50:50 and is one of the largest investments in water supply infrastructure in NSW history. It would provide more reliable, secure water to support Tamworth’s projected population growth, while maintaining water for irrigators,” Mr Anderson said.

“Secure water supply is critical to the future of Tamworth and the Peel Valley and that is why we are getting on with the job of bringing this dam to a final investment decision.”

Mr Anderson said a New Dungowan Dam would be 58 metres high with the catchment area measuring 175 square kilometres.

The NSW commitment is conditional on a continued, guaranteed 50% co-contribution from the Commonwealth.

NSW funding is also subject to Infrastructure Australia’s assessment of the business case and finalisation of planning approvals.

Work has already started on the first stage of the new 55km underground pipeline which runs from the Calala Water Treatment Plant at Tamworth to the Dungowan Showgrounds. The final section of the pipeline will be laid once the initial stage is completed and will link the dam to the showgrounds and Tamworth.

The next milestone for the New Dungowan Dam and Pipeline is the Environmental Impact Statement which will go on display before the end of the year with the final investment decision to follow.

Deputy Prime Minister Barnaby Joyce and Minister for Lands and Water Kevin Anderson visit the new Dungowan Dam site.Deputy Prime Minister Barnaby Joyce and Minister for Lands and Water Kevin Anderson visit with the new Dungowan Dam team.