CSIRO is in the process of research into an integrated forward osmosis and reverse osmosis wastewater treatment system that could be installed at the Westdale Water Treatment Plant and a large trade waste discharge abattoir in Tamworth.

The forward osmosis process is expected to lower energy costs, reduce the need for additional chemical treatment and save at least 90 per cent of water from being wasted.

Tamworth Regional Council (TRC) councillor Juanita Wilson said the pilot is the perfect fit for the city.

"One of the things we do in Australia is not back our research groups and we need to back this, there is the potential of grant funding and I'm quite excited about it," she said.

The project will cost $140,000 to be set aside to fund part of the project and TRC water and waste director Bruce Logan will seek further funds from the state government.

The pilot will see CSIRO scientists and engineers working on both sites for about two weeks to optimise the process from January through to March.

At the end of May a report will be submitted on the outcome of the trial.

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The plan also had the support of Cr Mark Rodda who said it was an excellent opportunity for Tamworth.

"I think we should be proud they have selected our region to trial this technology," he said.

"We know we have water woes and I'm sure this is part of the answer to dealing with our water woes and current wastewater issue."

Cr Charles Impy said the plan could help attract businesses to Tamworth's Global Gateway Park through saving wastewater.

Tamworth MP Kevin Anderson has been approached to help supply state government funds to the project.

The motion was carried unanimously.