The city of Tamworth will have enough water from the Dungowan Dam project to sustain a population of 120,000 people, the water minister said on Friday.
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Minister Melinda Pavey visited Tamworth a week after an extraordinary outburst by Deputy Premier John Barilaro, in which he slammed Tamworth's mayor as "ungrateful" for the new water scheme.
About seven gigalitres of water from the new $484 million dam would go to city supplies, she said.
The city uses about 9 gigalitres a year, with about half going to residents and half industry, she said.
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"That isn't set in stone yet because we haven't finished the final [Dungowan Dam] business case. But we're looking at an amount around that," she said.
"At a very rough estimate, you're looking at water enough for around 120,000 people."
The water allocation issue had become a sticking point for Tamworth council, with Tamworth Mayor Col Murray telling the Leader in January he was concerned it had not yet been revealed how much of the dam's 22.5 gigalitres would be allocated to the city.
Asked if tempers had cooled after her visit, Mrs Pavey said Australians are "lucky to live in a democracy where we can have opinions".
"John Barilaro is fantastic. Kevin Anderson is an energetic out-there get-it-done guy," she said.
"We're delivering. It's not like we're not putting money up. The National Party is delivering for this great city. Let's just put those politics aside and just get on with it."
But the new dam may take longer than had been anticipated to build, with Mrs Pavey citing on Friday an estimate that a business case for the scheme would be completed "by the end of the year".
She had previously said the case could be completed as early as June.
"I'm giving myself leeway and if it comes sooner I'll be happier," she said.
"It takes time. I want to be able to manage expectations as best as I can.
"There's still a lot of work to do."
Tamworth council staff and Kevin Anderson joined Mrs Pavey to announce MPC Kinetic had won the contract to construct a replacement for a decades-old pipeline, which will connect the new Dungowan Dam with Tamworth.
The company last year completed the Chaffey to Tamworth pipeline project.
Cr Murray said it was a "great pleasure" to welcome the minister to Tamworth, "particularly when you come bearing gifts, like this announcement today".