The project was one of 50 options presented in the Namoi Regional Water Strategy to explore securing long-term water security for the Namoi Valley.

Newly appointed Minister for Lands and Water and Tamworth MP Kevin Anderson put a stop to the project entirely after a town hall meeting with the Manilla community on December 6.

"After listening to community feedback and extensive assessments, it was clear that the proposal would have significant negative impacts on the local environment and the town and therefore should be stopped," he said.

Concerns from the community included a lack of public consultation, the impact the diversion would have on the river downstream at Manilla, and the impact it would have on fishing, recreation and tourism.

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"Not only would the proposal negatively impact Manilla, but assessments demonstrate that any improvements to water security would be immaterial, and the weir's cost would far outweigh any benefits," Mr Anderson said.

"Most concerning to me would be the impact on the mighty Namoi River, which has been the lifeblood of indigenous and non-indigenous communities for centuries."

Alternative options for futureproofing water security in the region will continue to be explored, Mr Anderson added.

"Our region is benefitting from record investment in water infrastructure through the Dungowan Dam proposal," he said.

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