Clean, reliable water looked like a wonderful promise for the western NSW town of Cobar, but, in the end, it was all a pipedream.

After what they called “a thorough and rigorous Final Business Case (FBC)”, the NSW Government has decided to pause plans to replace Cobar’s oldest water supply pipeline because of cost blow-outs.

With the pipeline proposal now dust, Executive Director of Infrastructure Projects at the Department of Climate Change, Energy, the Environment and Water, Greg Winchester, said he understands the community response.

“I know the community will be disappointed that we are not progressing with the pipeline project right now,” Mr Winchester said.

“We have worked hard over the past year to look at different funding pathways to find a way forward but, at this stage, we have no other choice but to hit pause,” he added.

Strengthening water security for the region remains a top priority, the NSW Government says, and they will now focus on the $49 million construction of new pump stations at Hermidale and Nyngan, set to commence mid-year.

“The good news is work on the final business case is complete, so the pipeline project could be revisited down the track.

“This pipeline will remain operational and will continue to be maintained by Cobar Water Board alongside its other water supply pipeline that shows zero signs of leakage and is expected to continue to supply safe and secure water for more than a decade,” Mr Winchester said.

These critical upgrades are a top priority to safeguard Cobar’s town water supply, as the aging pumps are in urgent need of replacement to prevent a catastrophic system failure and ensure long-term water reliability.

Following this finding, the NSW Government extensively explored other funding options. However, with no viable budget, it said the investment decision must be deferred.

Cobar is one of the few towns in NSW without its own water source, relying on two pipelines to transfer water 130km from the Nyngan weir pool to households, businesses and the mining industry.

“The NSW Government will continue to work closely with the Member for Barwon Roy Butler, Cobar Shire Council, Bogan Shire Council and the Cobar Water Board as we get on with the job of building the $49 million high-priority pump stations at Hermidale and Nyngan,” Mr Winchester said.

“Early works have commenced, and we are expecting shovels in the ground by mid-year with completion of the pump stations on track for the end of 2026 – safeguarding Cobar’s pumping infrastructure for at least half a century,” he concluded.