A new federal initiative to encourage more migrants to settle regionally needs more funding to ensure towns have the infrastructure to cater for population growth, Barnaby Joyce says.
This week, the prime minister Scott Morrison announced the government would reduce the country's yearly migration intake by 15 per cent, while pushing more migrants to regional areas.
He also announced two new regional visas for skilled workers and scholarships to attract international students to regional universities.
New England MP Barnaby Joyce welcomed the announcement, but he said regional towns would need strategic investment to be able to sustain any rapid population growth.
He also said it could be advantageous for Tamworth in its push to establish a university campus and expand its water supply.
"They talk about people going to universities in regional areas, sure, we'll need money for universities," he said.
"I believe that should help Tamworth as we drive forward for our plans here.
"They're going to need water infrastructure, so we'll need further money for dams to underpin the water infrastructure.
"I am happy for decent people to move to regional areas, but it has got to come with an investment from the government for the infrastructure to support it."
The Morrison government announcement included the investment of "$75 billion in road, rail and air infrastructure across the country".
The policy was primarily aimed at reducing congestion in the major cities, but it was hoped to stimulate growth in the regions.
"It's important that we have the opportunity for people to go where they are needed," Mr Morrison said.
"Over 45,000 job vacancies in regional Australia ... have been put to the government, through the migration programme and the need to have more workers in those areas.
"So it's important that we take the opportunity for our migration programme to play its role in seizing those opportunities."