The state government grant to Port Macquarie-Hastings Council will fund water studies to improve operations and monitor the health of Lake Innes, Lake Cathie and Cathie Creek.

Port Macquarie-Hastings Council environmental projects officer Jack Grant said the council was delighted to receive the funding for the hydrodynamic modelling of the waterway.

"Using a computer modelled representation of how the lake systems operate will enable us to more accurately assess potential management impacts to the waterways," he said.

"It will also enable us to compare different estuary management options against the social, environmental, and economic demands."

Mr Grant said the council could also assess the feasibility of many of the estuary management options often discussed in the community such as the decoupling of the Lake Innes and Cathie Creek, altering the opening strategy and modifying bridge structures.

Lake Cathie and Lake Innes are joined by Cathie Creek.

Local Government Minister Shelley Hancock said the $300,000 funding, under the Coastal and Estuary Grants Program, would help ensure the sustainability of these valuable community assets.

"This is $300,000 in NSW government funding that Port Macquarie-Hastings Council will use to further investigate key waterflow modelling in Lake Innes, Lake Cathie and Cathie Creek waterway," Mrs Hancock said.

"The planning stream of the Coastal and Estuary Grants Program supports local councils to understand the complex coastal and estuarine environment, and aims to improve the health of the state's coast and estuaries through well-planned action."

Port Macquarie MP Leslie Williams said the state government funding would allow Port Macquarie-Hastings Council to investigate new opportunities to manage and protect our local waterways.

"The Lake Cathie estuary system is home to an abundant range of birds and wildlife and is a much-loved waterway, and as a local resident, I want to see it managed in the most appropriate way," Mrs Williams said.

"This investment supports our council to find even more ways to manage and protect our coastline and estuaries for future generations to enjoy."

Parliamentary Secretary for the Environment Felicity Wilson said the new modelling systems and processes would target key areas of concern.

"Updating the hydrodynamic modelling involves collecting additional environmental data from the waterway to use in an improved computer model which then helps assess various site-specific management options over a range of climate, weather and entrance conditions," Ms Wilson said.

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