The Australian and New South Wales governments have announced up to $70 million in funding to support economic development across communities in the southern Murray-Darling Basin. The investment aims to help councils, organisations and businesses adapt to changes brought about by environmental water recovery under the Basin Plan.

The funding forms part of the Economic Development and Infrastructure Round, delivered through the Sustainable Communities Program. It represents a significant expansion of support for towns and regions across the Riverina and Murray areas that may be affected by water purchasing activities undertaken by the Commonwealth.

Grants ranging from $750,000 to $10 million will be available for projects designed to create new economic opportunities and reduce barriers to workforce participation. The intention is to enable residents to continue living and working in their local communities even as water recovery measures are implemented.

Eligible projects include infrastructure that opens up new industrial developments and agricultural opportunities, economic infrastructure such as processing facilities or logistics hubs, and community infrastructure like childcare centres that support workforce participation. The goal is to foster job creation, encourage innovation and deliver critical infrastructure that strengthens local economies.

Twelve local government areas are targeted for support under this round: Balranald, Berrigan, Carrathool, Edward River, Federation, Griffith, Hay, Leeton, Murray River, Murrumbidgee, Narrandera and Wentworth.

This latest announcement builds on an earlier $16.3 million Early Investment Round unveiled in August 2025, which provided initial stimulus to vulnerable communities. That funding supported projects including a $4 million expansion of Ravensworth Feedlot to accommodate 75,000 head of cattle, $4 million for upgrades to the Bullanginya Precinct by Barooga Sports Club, and nearly $500,000 for infrastructure improvements at Hillston Caravan Park.

Applications for the Economic Development and Infrastructure Round opened on Tuesday, 9 December 2025 at midday and will close on Tuesday, 24 February 2026 at midday. The program has been shaped by extensive consultation with southern Basin communities, with insights from these discussions also informing the design of future funding rounds.

Additional support specifically for businesses, industry, community-led initiatives and Aboriginal projects is expected to become available during 2026.

Agriculture and Regional NSW Minister Tara Moriarty emphasised the program's focus on economic diversification and long-term resilience. She noted that while the state government does not support water buybacks, it remains committed to supporting affected communities. The minister highlighted the opportunity for agriculture and other businesses to expand into new markets and create jobs.

Federal Environment and Water Minister Murray Watt described the program as a record Commonwealth investment in community support under the Murray-Darling Basin Plan. He stressed the importance of healthy river systems for strong, resilient communities and the government's commitment to restoring rivers whilst ensuring regional areas receive appropriate support throughout the process.

Further information about consultation outcomes and program updates is available at www.nsw.gov.au/scp, where applications can also be submitted. Details about the broader Australian Government Sustainable Communities Program can be found at the Department of Climate Change, Energy, the Environment and Water website.