The state's peak farming body has welcomed the first round of the $200 million Disaster Ready Fund.
NSW Farmers Rural Affairs Committee chair Deb Charlton said it was positive to see a consolidation of agencies that both prepare for and respond to natural disasters.
"As we've seen over the past year or so, when natural disasters strike they come hard and fast," Mrs Charlton said.
"It's critical we have arrangements in place so we can not only protect lives and livelihoods, but also respond to the clean-up and recovery quickly and efficiently.
"This consolidation should increase transparency and make the process of identifying, designing and constructing essential infrastructure easier for local councils to support their communities."
Widespread flooding across the state in 2021 and 2022 caused major damage not only to communities but also farms and rural businesses that were still dealing with the ongoing impact of ruined roads and essential community infrastructure.
Mrs Charlton said community consultation - both for towns and surrounding farmers - had to be a key component of disaster preparedness for the future.
"As we know, there is no certainty when it comes to disaster impacts, but what we do know is it is often costly and time-consuming," Mrs Charlton said.
"There is a real risk that ill-informed planning could worsen impacts on farms and roads - you might divert water away from a town and in so doing inundate the farms that economically support that town.
"Broad community consultation that takes in not just homes and shops but also surrounding farms and rural businesses must be taken into account by the three levels of government in their planning decisions."
