Member councils of the Namoi Unlimited Joint Organisation will share the funds from the NSW Government's Safe and Secure Water Program, which are set to go towards assessments of town water supplies and infrastructure in a bid to secure water resources for the future.

The funding comes after the region was one of the worst hit during the state's recent drought.

NSW Water Minister Melinda Pavey said the project had begun in January this year and is expected to take up to 12 months to complete.

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"The work being undertaken by these councils will include yield analysis for regulated and unregulated rivers and groundwater," Mrs Pavey said.

"This work is critical for establishing existing and future demand.

"This enables the Department of Planning, Industry and Environment - Water to work closely with the councils on local and regional options for greater security, which is critical for the future of the Namoi region."

Gunnedah mayor and Namoi Unlimited chairman Jamie Chaffey said water security was a key strategic regional priority for all five member councils.

"Namoi Unlimited's first strategic regional priority is to support strategic planning, intergovernmental relationships and advocacy around water and support our local water utilities," Cr Chaffey said.

"The Namoi Water Alliance has been operational for some time, and it is an important relationship to share technical and strategic information for our water teams.

"We are also proud that Namoi Unlimited seems to be the first Joint Organisation in NSW to collaborate with its councils under the Safe and Secure Water Program and receive funding for this critical work."

Tamworth mayor Col Murray said ratepayers would benefit from the funding.

"Systems that help ensure a shires water security are crucial to each community but are often too big and financially out of reach of the council on its own," Cr Murray said.

"That's why this kind of funding from the state government is so vital because every resident of the shire will benefit from it."

Tamworth MP Kevin Anderson said this funding would give council's the tools they need to plan for future water security in the Namoi.

"During the drought we saw how critical it is in the Namoi to plan and strategise for long periods of reduced rainfall," Mr Anderson said.

"This funding will give councils the tools they need to identify areas of concern in water security so that the NSW Government, the Department of Planning, Industry and Environment - Water and councils can work together to deliver solutions."

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