NSW Sustainable Communities Program - Economic Development and Infrastructure Round Frequently Asked Questions

The $70 million Economic Development and Infrastructure Round is being delivered under the NSW Sustainable Communities Program, which is part of the Murray-Darling Basin Plan.

It will fund critical infrastructure to minimise the impacts of water recovery on NSW Basin communities by creating and supporting jobs and new industries, encouraging innovation and delivering critical infrastructure that helps people to live and work locally.

Eligible projects must be located within one of 12 Local Government Areas exposed and vulnerable to water purchasing in the NSW southern Murray-Darling Basin (Basin), including:

• Balranald Shire Council
• Berrigan Shire Council
• Carrathool Shire Council
• Edward River Council
• Federation Council
• Griffith City Council
• Hay Shire Council
• Leeton Shire Council
• Murray River Council
• Murrumbidgee Council
• Narrandera Shire Council
• Wentworth Shire Council 

Under an agreement between the Australian and NSW governments, $160 million will flow from the NSW Sustainable Communities Program to NSW Basin communities affected by the Australian Government’s water recovery activities for the 450 gigalitre environmental water target.

The funding is to support communities to build resilience, create jobs and promote economic opportunities and is directed to NSW Basin communities most exposed and vulnerable to these water recovery activities, including voluntary water purchasing. 

NSW is taking a targeted approach to eligibility to ensure funding is directed to NSW Southern Basin communities most exposed and vulnerable to water purchasing:

• Exposure to water purchasing: Local Government Areas affected by the Restoring Our Rivers Voluntary Water Purchasing Program for the 450 GL target, which is being undertaken by the Australian Government.
• Community vulnerability: Local Government Areas with a high reliance on irrigated agriculture, limited adaptive capacity, and heightened sensitivity to changes in water access. Eligibility is determined using the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) community vulnerability analysis. Specifically, the 12 NSW Southern Basin LGAs with a vulnerability index of 0.50 or higher and within the scope of the water purchasing program are considered eligible.

Eligible applicants include:

• Local government authorities within the eligible NSW southern Basin LGAs
• Incorporated not-for-profit organisations
• Aboriginal Community Controlled Organisations, Local Aboriginal Land Councils and the NSW Aboriginal Land Council
• Universities and other tertiary education institutions
• Private sector organisations, including businesses and industry groups.

Applicants must hold an Australian Business Number (ABN), be financially viable, and demonstrate the capacity to deliver the proposed project.

Refer to the program guidelines for full eligibility requirements.

Yes. Applicants may submit more than one application. Each application must be for a separate project that meets all eligibility, feasibility and merit criteria.

When submitting multiple applications, applicants will be asked to rank projects in order of priority. This ranking may be considered by the assessment panel when making funding recommendations.

Projects must:

• Commence within 6 months of the funding deed commencement date, and
• Be completed by 31 May 2029.

Project approvals (for example development approval) must be obtained within 12 months of the commencement date of the funding deed and factored into overall project delivery timeframes.

Yes. Most applicants must provide a co-contribution as part of the funding application. The minimum requirements include:

For example, an eligible council must provide a minimum co‑contribution of 25%. An application for $2 million therefore requires a council contribution of at least $500,000, resulting in a total project cost of $2.5 million.

Co‑contributions may include funding from other grants sources, including state or Australian Government grants. Applicants must provide information on the grant’s value, name and deliverables. Unsecured grants should not be relied on as co‑contributions.

Total project cost refers to the full cost of delivering a project and may be equal to or greater than the grant amount requested.

For example, a project with a total project cost of $25 million may seek $10 million from the program if $15 million is already secured through sources such as loans or cash reserves.

The total project cost determines the level of business case and cost‑benefit analysis required for the application.

Refer to the program guidelines for detail on business case and project feasibility requirements.

Yes. A business case is required for all applications.

Projects with a total project cost greater than $20 million require a full business case consistent with the NSW Government Business Case Guidelines (TPG24-29).

Refer to the program guidelines for business case and project feasibility requirements.

Project management templates and resources are available here.

Yes. The department’s region-based Economic Development Managers are available to provide guidance on project eligibility prior to submitting an application. 

Please email nswscp@dpird.nsw.gov.au and include the project’s eligible LGA to be connected with the relevant Economic Development Manager. 

Applicants can access support and resources through the program’s Grants and Funding Finder webpage to help with their application preparation, including:

• Online information webinar: The department will provide an online information webinar during the application period. The webinar will provide an overview of the program, key dates, and guidance on completing the application.
• Frequently Asked Questions (FAQs): regularly updated to reflect common queries about eligibility and applications.
• Eligibility feedback: applicants can email nswscp@dpird.nsw.gov.au early in the application period for preliminary eligibility guidance.
• Templates and resources: business case templates, project management tools, and checklists to assist with preparing your submission.

Please check with the department prior to submitting if you are unclear about any part of the application.

Yes. Securing funding under an individual funding round of the NSW Sustainable Communities Program will not exclude you from applying for funding under other rounds.

Yes. Further funding will be available in 2026 and will focus on:

• Supporting Basin businesses and industries to grow and create jobs by investing in skills, encouraging innovation, improving productivity and helping them expand and diversify products.
• Empowering and building stronger communities through support for local-led initiatives that improve community participation and wellbeing, and support for Aboriginal economic and cultural participation.

Visit NSW Sustainable Communities Program for more information and updates funding announcements.