The idea was that Tamworth could siphon water for town use before it flows out of the Peel Valley with a new pipeline between the Peel River near Carrol Gap Bridge and Keepit Dam.

The concept was quickly knocked back by councillors who felt the focus needed to remain unmuddied on the $480 million new Dungowan Dam project.

Councillor Glenn Inglis made it clear he would not support the motion at Tuesday night's meeting.

"The recommendation seeking funding is not in the best interest of Tamworth, it makes no reference to Keepit Dam to Calala Water Treatment Plant and without that it makes zero contribution to Tamworth and the region's water supply," he said.

"I also believe the motion shows a lack of understanding of the infrastructure dynamics pertaining to moving large volumes of water over short distances."

A WaterNSW report showed that 62.4 gigalitres of water was measured at the Carroll Gap Bridge as environmental water that had left the Peel River into the Namoi River for the reporting period due to good rain in the catchment area.

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The suggestion was for the council to ask the state government for funds to investigate how that water might be saved with a pump site on the Peel River to move it to Keepit Dam through a pipeline when there's good rain and river flows.

But, both Cr Russell Webb and TRC's water and waste director Bruce Logan agreed that from a technical perspective a pipeline to Keepit Dam would not help secure the city's water supply.