Tourism has waned since the town water supply turned toxic thanks to an unhealthy dose of arsenic.

Northern Tablelands MP Adam Marshall announced $100,000 to help market the town just days after Uralla Shire Council moved to ask for funds.

It's too early to say what the council will do with the funds, mayor Michael Pearce said, but he welcomed the boost.

"I haven't spoken to the acting general manager nor been briefed by Adam Marshall yet," he said.

The funds will help to develop a Uralla Shire business map, employ a travel writer and produce a promotional video for the town.

Mr Marshall said Uralla council's idea of a co-ordinated tourism campaign promoting Uralla as 'open for business' on social media, and in traditional media outlets, was a fantastic idea that would deliver real benefits for businesses.

"Last week the state government announced the first phase of its new fire recovery program, of which Uralla received $100,000, which can be put towards small-scale local activities that will kick-start the social and economic recovery of their communities," Mr Marshall said.

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"I support the initiative wholeheartedly and urge council to immediately get planning on how it wants to roll this campaign out, because the sooner visitors start returning to town, the better it will be for everyone."

Mr Marshall said there was also direct support for local businesses suffering the fall-out of bushfires.

"The Bushfire Working Capital and Recovery Loan of up to $50,000 is specifically designed to provide an immediate injection of money to help return and continue business operations by covering salaries or wages," he said.

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