Kevin Anderson told the Leader there is an "appetite" in NSW state parliament "to look at all options", including the controversial water security measure.

"You never miss your water until the well runs dry. And the well ran very close to running dry [last year]. Everything has to be on the table about how do we get better about using the available water we have," he said.

"Whether it's recycled, whether it's reverse osmosis, whatever the case may be, we have to get smarter about it [water management]. We have to learn from the mistakes of the past."

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A Tamworth community group formed this year to lobby for the strategy, rather than building an $480 million new Dungowan Dam.

At the height of the 2019 water crisis, Tamworth was staring down the barrel of Day Zero, completely running dry.

The city spent months on highest-level water restrictions.

And some communities in the region, like Guyra and Wilcannia, ran out completely.

Tenterfield shire, which was also forced to Level 5 water restrictions, controversially investigated adding recycled water to their drinking supply in 2019.

With the crisis now a memory, a number of state politicians have told the Leader parliament should have a second look at the idea.

Labor MP David Harris last year said a parliamentary inquiry into last year's drought crisis would "very strongly" consider the option.

Chairperson and Liberal MP Justin Clancy later suggested they "might" investigate whether the approach would help.

Mr Anderson said whatever action is taken will need the backing of Tamworth residents.

"I've drunk recycled water," he said.

"You have to make sure that the community comes with you in any decisions you make on their behalf.

"There has to be consultation, there has to be those discussions had in the community. There may be some people uncomfortable with recycled water. But this is where you have options available."

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