Namoi Unlimited chairperson Jamie Chaffey announced Walcha would pilot the waste-water reuse project because the town a had "the greatest need at the moment for the use with water restrictions in place".

It comes after the Namoi councils joint organisation recently received a $285,000 state government grant to test the use of waste-water on gravel roads in the region.

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"When consideration was originally given to apply for the funds, much discussion was had about the needs to address this issue within the Walcha shire and board members are very pleased now that we've been able to undertake any trial works within their shire," Cr Chaffey said.

"Once there's a clear understanding of how best to re-use the waste water, there will be benefits throughout the Namoi Unlimited councils."

Walcha mayor Eric Noakes was pleased the JO members had chosen his shire for the pilot study.

"With a critical shortage of groundwater available in many of our council areas, the recycling of our waste water reserves to fulfil this role should make roads safer and cut maintenance costs," Cr Noakes said.

"Waste-water is always a valuable resource, and to be able to find ways to use it safely and economically will be an asset to all councils."

Walcha Council general manager Jack O'Hara said the decision came at an opportune time with it becoming harder to source water for necessary roadworks.

"Obviously with the severe drought, the sourcing of water for roadworks has become increasingly difficult and the standard of our gravel roads is suffering greatly as a result," Mr O'Hara said.

"This pilot has the potential to provide much-needed relief and, going forward, any potential change of practices that conserve water will be welcomed."

Funding for the waste water use program came from round one of the state government's Increasing Resilience to Climate Change program.

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