The successful tenderer for the $600,000 Eulalie Artesian Bore Scheme, the newest of the schemes conserving water from the Great Artesian Basin, has been appointed.
Covering 25,000 hectares of grazing land near Mungindi, the scheme will result in 120 million litres of water being saved from waste every year.
Ryan Pumping and Irrigation is currently negotiating the construction contract with the Eulalie Bore Group.
Natural resources minister Craig Knowles said the Eulalie bore had been flowing continuously since 1910.
"When it was originally sunk, it flowed at 18 litres per second, but due to reduced water and pressure from the Great Artesian Basin, it now flows at just 5 litres per second.
"Each year 177 million litres of bore water travels through 28km of open bore drains and a primitive piping system, causing land degradation problems, and emptying into the Barwon River.
"Up to 95 per cent is wasted by evaporation and seeping into soil, adding to major environmental problems such as salinity.
"When finished, the bore will be capped to control water flow and a network of 90km of underground pipes will deliver water to 85 watering points across seven properties, ensuring only the water needed will be used.
"Incredibly, 120 million litres will be saved each year and the current salt discharge of 330 kilograms per day - or 120 tonnes per year - will no longer enter the landscape or the Barwon River."
Mr Knowles said the scheme was a small but significant step towards ensuring the future of the Great Artesian Basin.
"This is a classic case of governments and landholders working together to safeguard the future of the Great Artesian Basin, which supports 90,000 people and production worth more than $3 billion each year," Mr Knowles said.
"Last month I saw first hand benefits being derived from a similar project, the neighbouring $1.6 million Goondablui Artesian Bore Scheme at Collarenebri.
"Initiatives such as these are the kind of spirited, collaborative and commonsense approaches between government and farmers that I welcome and encourage with open arms."
The minister said the Eulalie Bore Scheme was part of the Cap and Pipe the Bores project, funded under the State and Commonwealth $20 million Great Artesian Basin Sustainability Initiative.
The NSW and Commonwealth governments will contribute about $300,000 and the seven landholders will provide the $300,000 balance.
Department of Infrastructure, Planning and Natural Resources conservation engineers have worked with the landholders to design the scheme and will oversee construction.
The Goondablui and Eulalie schemes cover 900 square kilometres, which is equal to one quarter of the size of the Sydney metropolitan area or half the size of New York City.
Construction will begin in August and the scheme should be completed by Christmas.