Preliminary investigative and planning work to raise the Wyangala Dam Wall is under way, with WaterNSW progressing an environmental impact study (EIS), early scoping, community engagement, concept design and the final business case.
Member for Cootamundra Steph Cooke said she welcomed the update from WaterNSW.
"It is great to see the project well underway with early works progressing," Ms Cooke said.
"I look forward to these initial works being completed so we can get shovels in the ground on this important work to increase the capacity of Wyangala Dam for an additional 650 gigalitres."
The environmental impact study's first draft will be made public in mid-2021 and will involve a public submissions process.
The intention of the EIS process is to ultimately address any matters of significant environmental impact in line with strict state and federal government environmental regulations.
Investigations into likely inundation levels are also advancing and should be finalised by September this year.
The project's first major construction work is the redevelopment of the Reflections Holiday Park, which is scheduled to commence in October, and estimated to take up to 12 months.