Tamworth Regional Council awarded the contract for the Bournes Lane Reservoir and Pipeline at Moore Creek on March 8.

The council purchased a lot of land on Bournes Lane in 2011, after identifying the need for a reservoir for additional water storage.

Early works have started on site, and geotechnical investigations have uncovered risks around soil stabilisation involved with extensive bulk earthworks with the project, according to a report to council.

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"Work on the excavation of the site to allow a level area for the construction of both the required 10ML reservoir and a possible future additional 10ML reservoir on the site has commenced," council's senior project engineer Nathan Morgan said.

Councillors will discuss the need for additional funding to address soil stabilisation of the embankment in closed council at their ordinary meeting on Tuesday night.

There is $3 million set aside for the project in the council's 2021-22 budget.

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