Cowra Shire mayor Bill West, member for Cootamundra Steph Cooke and NSW Water Minister Belinda Pavey visited Wyangala on Friday to announce the contract.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack wasn't in attendance but said the $4 million contract had been awarded to accomplished Australian Infrastructure service provider Enviropacific.

"Enviropacific has previously delivered water treatment facilities for Barangaroo, NorthConnex, Gold Coast and Melbourne Airports, the Victorian Police, State Emergency Service and Country Fire Service training facility in Bangholme Victoria," the Deputy Prime Minister said.

"Enviropacific has also committed to targeting one-third of its workforce to be sourced from people in the local community, which will bring a range of quality jobs to the region.

"A number of local businesses including fabrication, electrical installation, civil engineering, civil and earthworks and geotechnical surveying are expected to be engaged by the project in the coming months to help deliver this exciting project.

"This will interest many of the almost 300 local businesses on the Wyangala local business register," Mr McCormack said.

Planned as part of an early works package for the proposed Wyangala Dam Wall Raising project, the plant will be able to deliver an additional 800,000 litres of clean drinking water each day to residents and holidaymakers in Wyangala Village and the Wyangala Waters Holiday Park.

New South Wales Minister for Water, Property and Housing, Melinda Pavey said the treatment plant is an example of work at Wyangala that could proceed while the dam wall-raising proposal is being assessed for approval by the Australian and NSW governments.

"This new water treatment plant will significantly increase the volume of clean drinking water available to communities in the Wyangala region and is part of a broader program of work we are carrying out to deliver increased water security to the Lachlan Valley," Minister Pavey said.

"Access to an abundant supply of clean drinking water is absolutely essential for the people in our towns and communities.

"Planning for the water treatment plant is progressing well and next steps include finalising the detailed design and planning approvals. Construction is expected to start later this year."

Member for Cootamundra Steph Cooke said the new plant was vital for the Wyangala community.

"This has been the number one concern for the Wyangala community since I was elected and I am proud of the work we have done together to get a potable water supply for the community," Ms Cooke said.

"I am so pleased we are finally able to address this issue."

"This work is also creating local jobs which is great news for this region and a clear sign the NSW Government is committed to strengthening our regional communities and economies."

Mayor of Cowra Shire Council Bill West said the new plant was warmly welcomed.

"This is a very welcome by-product of the Wyangala Dam Wall Raising project and will have enormous benefits for the local community," Cr West said.

"We are pleased this new water treatment plant will also supply water to the Wyangala Waters Holiday Park. This will enable the holiday park to grow and welcome more visitors to our region."

The Wyangala Dam Wall Raising project is jointly funded by the Australian and NSW governments, with the Australian Government committing $325 million towards the project.

Pictured above: David Stanke, Executive Manager Planning and Business Improvement Reflections Holiday Parks, Steph Cooke MP, Member for Cootamundra, NSW Water Minister Melinda Pavey, Clr Bill West, Mayor Cowra Shire Council, David Tucker, CEO Enviropacific, Sagar Adhikari, General Manager Water Enviropacific