The Albanese and Minns Governments are providing up to $70 million in funding for councils, organisations and businesses to support economic adjustment in the southern Murray-Darling Basin.
Under a joint agreement, the Australian Government is providing funding to invest in Basin communities across NSW through the Sustainable Communities Program.
The funding aims to minimise potential socio-economic impacts of environmental water recovery under the Basin Plan.
The $70 million Economic Development and Infrastructure Round is the next phase of the Minns Government's plans to support communities across the Riverina and Murray regions which may be vulnerable and exposed to water purchasing being undertaken by the Australian Government.
The funding will provide grants from $750,000 to $10 million for projects that create new economic opportunities and reduce barriers to workforce participation, enabling people to continue to live and work locally after water recovery.
The funding aims to minimise the impacts of water recovery by creating and supporting jobs and new industries, encouraging innovation and delivering critical infrastructure that helps people to live and work locally.
Projects eligible for funding as part of the $70 million program could include:
- infrastructure that unlocks industrial developments and new opportunities for agriculture
- economic infrastructure and upgrades to support industry such as new processing facilities or logistics hubs
- infrastructure to support workforce participation including childcare or other community services.
This latest round will target 12 Local Government Areas:
- Balranald
- Berrigan
- Carrathool
- Edward River
- Federation
- Griffith
- Hay
- Leeton
- Murray River
- Murrumbidgee
- Narrandera
- Wentworth
The $70 million Economic Development and Infrastructure Round follows the Early Investment Round of $16.3 million announced in August 2025, which provided initial stimulus to support investments in exposed and vulnerable communities.
Projects supported by the initial funding included $4 million to expand the capacity of Ravensworth Feedlot to 75,000 head of cattle, $4 million for Barooga Sports Club to upgrade the Bullanginya Precinct, and $493,110 for Carrathool Shire Council to upgrade infrastructure at Hillston Caravan Park.
Applications open on Tuesday 9 December 2025 at 12pm and close Tuesday 24 February 2026 at 12pm.
The Economic Development and Infrastructure Round has been designed using feedback from extensive consultation with NSW Southern Basin communities. The insights will also inform the design of future rounds under the NSW Sustainable Communities Program.
Further support for businesses and industry, as well as community-led and Aboriginal initiatives will be available in 2026.
For more information on consultation outcomes and updates on funding under the NSW Sustainable Communities Program, visit www.nsw.gov.au/scp.
To apply for the Economic Development and Infrastructure Round, visit www.nsw.gov.au/scp.
To learn more about the Australian Government's Sustainable Communities Program, visit https://www.dcceew.gov.au/water/policy/programs/open/sustainable-communities.
Minister for Agriculture and Regional NSW, Tara Moriarty said:
"This is about giving Southern Basin communities the funding and support they need to begin a new chapter - one where local economies can diversify, industries can grow, and families and workers can look ahead to new opportunities with confidence.
"We're encouraging agriculture and other businesses to expand into new markets and make the most of the millions of dollars available to help create jobs, drive innovation and build long-term economic strength."
"While the NSW Government does not support water buybacks, we are continuing to support these communities."
Federal Minister for the Environment and Water, Murray Watt said:
"The Albanese Government is proud to support local communities adapt and diversify their economies through the Sustainable Communities Program.
"This program delivers a record Commonwealth investment in community support under the Murray-Darling Basin Plan and the focus on economic development will deliver long term benefits.
"Healthy river systems are essential for strong, resilient communities. We're committed to restoring our rivers while ensuring regional communities are supported along the way."
