An underground fuel tank contaminated the village's water supplies last January.

A year on, the state government has committed to fund $28,000 worth of cartage until July 2021, or until the problem is resolved. It will also spend $22,000 re-plumbing residences so that locals have access to rainwater tanks.

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Member for Tamworth Kevin Anderson said Duri residents had been suffering from a "sub-standard water supply for too long".

"I'm pleased that the NSW Government was able to step in and help out," he said.

Tamworth Regional Council General Manager Paul Bennett said they had been working with Duri residents for over a year in search of a solution.

"This NSW Government funding will ensure the people of Duri do not go without water," he said.

"Tamworth Regional Council is thankful for the work Mr. Anderson and the NSW Government undertook to ensure this funding came through."

Duri residents were first warned not to drink the local water after residents reported a fuel smell in the middle of the village on December 29, 2019.

Investigations revealed one of the Duri General Store's underground storage tanks had been leaking for years undetected, before seeping into a domestic bore.

In July, the NSW Environmental Protection Authority (EPA) declared the site was "significantly contaminated".

About 12 residents could be banned from using groundwater for up to three years as a result of the contamination.

The EPA is managing the investigation and the plans for remediation at the site. The leaking fuel tank has been removed.

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