The shire's sister city has raised hundreds of thousands of dollars over two years, which has been distributed to drought-affected residents through the council, Gunnedah Lions Club, Rotary clubs, and the Rural Financial Counselling Service.

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"We are all extremely thankful for the recent support provided by Lane Cove. It is a wonderful example of community service and an important gesture to our farming families that they have not been forgotten during this drought," Cr Chaffey said.

In December, Lane Cove donated thousands of dollars worth of Gunny Money gift cards to help farming families and retailers at Christmas.

More than $17,000 was raised through the council's Christmas Drought Fundraiser, which included more than $10,000 from trivia events run by The Alcott Lane Cove and In The Cove, a popular website and Facebook page.

Lane Cove Council also donated $5000 and more than $3800 was raised through the Rain Bringer Christmas Concert hosted by Lane Cove Youth Orchestra and Hunters Hill High School.

The council donated $5000 to Gunnedah in 2018, and the Gold for Gunnedah campaign, driven by In the Cove's Jacky Barker raised almost $30,000.

Residents from the city, including Lane Cove councillor Andrew Zbik and his wife, ex-Gunnedah woman Bronwyn, visited the shire in November to find out how the funds had helped.

Gunnedah and Lane Cove became sister cities in 1990s when the shire was in drought.