Wyangala Dam Wall Raising Project scrapped by NSW Government

Minister for Water Rose Jackson said the project's Final Business Case and an independent review by Infrastructure NSW recommended not raising the dam wall.

"Robust investigations show that while raising the wall by ten metres is technically feasible, it could cause substantial and irreversible environmental impacts," Ms Jackson said.

"Hydrological modelling also found raising the wall, with a five-metre flood mitigation zone, was also likely to have devastating impacts on the internationally significant downstream environment, resulting in excessive biodiversity offset costs."

No specific environmental impacts were given.

More than $74 million over five years was invested in the project prior to this announcement. Ms Jackson pointed to the "billions of dollars" needed to extend the dam wall as a reason the project was axed.

"We have a responsibility to taxpayers to only fund infrastructure projects that provide maximum bang for the buck and, in this case, the capital costs are too high, and the benefits are too low," she added.

During a visit to Orange on September 8, Minister for Agriculture and Western NSW, Tara Moriarty, was asked by the ACM if the Wyangala project was set to be scrapped.

"That's a question for my colleague, the minister of water," she said.

"But I wouldn't be making budget announcements here today."

Asked if she thought the Wyangala Dam project needed to go ahead, she added "that's a question for the minister of water."

When asked that, given her role as Minister for Western NSW, she could give an opinion on a personal level, Ms Moriarty said: "I'm here on behalf of government and that's a question for the minister for water."

The minister for water's office had previously been approached by the ACM on August 25 about the project.

A response received from Ms Jackson that day said: "We have received the Final Business Case for Wyangala Dam from Infrastructure NSW and will have more to say soon.

"Our priority is to keep the community up to date and provide transparent communication as we know this has been a long process."

In announcing the project had been scrapped on September 13, Ms Jackson said it was "not viable".

"We know there's a drought knocking on our door threatening the water security of towns across NSW which is why we are reviewing our strategies as a priority," she added.

"The former government wasted time and money on business cases instead of undertaking any real drought preparedness work."

Member for Orange, Phil Donato, had previously barracked for the project to go ahead.

He believed had the previous Liberal government started work on the project already, then it would not have been axed.

"I'm also aware of the fiscal situation of the state which the current government has inherited from the previous government," he said.

"Although it's been ruled off the table now, I'm hopeful we can continue momentum and pressure on the government on this issue. Make no mistake, had it been started while the previous government was in, then it wouldn't have been cut."

The NSW Government said it would seek feedback on how it planned to address issues such as flood mitigation and shoring up water security in the draft Lachlan Regional Water Strategy. This will go on public exhibition before the end of September.

Ms Jackson said the decisions made about the future of water in the Lachlan region would be based on "evidence" and "state-of-the-art climate modelling".

"We want to support economic growth and balance different water needs, ensuring there's the right amount of water for the right purpose at the right time," she said.

"I encourage everyone across the Lachlan region to provide their input when the draft strategy goes on exhibition, because feedback from councils, industry and the community will play a vital role in helping us determine the best way forward."

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