Summer saw Port Macquarie-Hastings placed on strict water restrictions in January as combined dam levels at Cowarra and Port Macquarie fell critically low and the region recorded its lowest ever rainfall in more than 120 years.

The NSW Government has announced a $2.4 million funding injection for two major water security proofing projects for the local government area from its Emergency Relief for Regional Town Water Supplies program.

The funding will cover 25 per cent of the costs for a $9.36 million upgrade to the Wauchope Water Treatment Plant to increase its capacity from 7 to 21 megalitres a day; and a $250,000 investigation into alternative water supply to explore the feasibility of a groundwater supplemented alternate supply.

Member for Oxley Melinda Pavey said the fund aims to secure and improve town water services for regional communities.

"This funding will help ensure the continuity of council's water supply through upgrades to the existing Wauchope Water Treatment Plant and alternative water supply investigations," Mrs Pavey said.

"Council's dams are now holding over 80 per cent storage or over 10 months' water supply and it's important that we support the council to improve water quality and supply for the community."

Member for Port Macquarie, Leslie Williams said communities depend on access to clean, reliable and affordable water, and wastewater infrastructure that meets environmental and health standards.

"With over 1.9 million people living in more than 500 regional NSW communities, it is vital we continue to invest in priority local infrastructure," Mrs Williams said.

Port Macquarie-Hastings mayor, Peta Pinson said it is important to continue to work on water security for the growing community.

"There are numerous projects and initiatives that we are working on to ensure our community has access to a safe, clean water supply, and we appreciate the funding assistance from the NSW government."

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