This program is designed to help communities across the Murray-Darling basin quantify the impacts of reduced water availability due to drought, climate change and government policy (such as the buy back of irrigation licences for the environment) on the economies, employment and other social indicators in the region.

“We will use those funds to do socio-economic impact analyses across the two shires,” said general manager of the Narromine Shire Council, Ian Rogan.

“We will also be doing feasibility analyses on options for how our industries and communities might do things differently with less water in the future.”

The town will look at its water supply services and evaluate the idea of harvesting stormwater for use which has already proven to be successful in Orange. Waste water reuse and more efficient watering systems will also be considered.

“For irrigators the options are to reduce losses from supply channels, more efficient irrigation systems, different crop types that need less water or which produce more valuable produce per megalitre of water.”

The shire that relies heavily on the irrigation system has been negatively impacted by restrictions on water due to the drought, hence the report will hold great significance.

“The drought has probably reduced overall agricultural production in the shire by at least a third or about $50 million per year.

“In the irrigated sector the crop production on many irrigated farms is probably down by up to 75 percent,” Mr Rogan said.

The farmers affected have not suffered alone from the reductions in production and income, as the entire community has felt the brunt of less jobs, less work for contractors and lower vehicle and machinery sales.

“Drought and less irrigation water cause a reduction in farm income and activity,’’ Mr Rogan said.

“There are very strong flow-on effects to businesses and households across the whole shire.”

This report will take into account the past eight years of drought in the shire, and will consider exactly what changes can be made to local water usage to ensure the economic future of both the community and farmers.