The NSW Government announced the latest grant on Monday morning, bringing the total commitment to the Bathurst region to $25 million.

The latest grant follows the NSW Government's $15 million that went towards Bathurst's two major water security initiatives in November; a new pipeline from Winburndale Dam to the Gormans Hill filtration plant and stormwater harvesting.

Minister for Water, Property and Housing, Melinda Pavey, said while the drought has eased in some areas, many towns continue to be at risk of water shortages.

"We need greater security and certainty, that every drop is precious," she said.

"This work towards storm water harvesting is just a clever investment and gives the town more security going into the future."

Bathurst mayor Bobby Bourke said the funding announcement will allow council to build the city's water supply into the future.

"What we're doing now is securing water projects and working with the NSW Government," he said.

"A lot of hard work has been done by myself and the council to get that future to come a little bit quicker, because you don't want to be sitting back when you can't even water your lawn.

"We've had some good rainfall in town, but the rainfall has to be secured. This is a back-up system and it's long overdue."

"There will be more droughts in the future, but we can keep conserving it as a community.

"The reduction on water use by the community has been fantastic. Now we've just got to put things in place so we don't go back to where we were, thinking we've got a dam full of water and we're okay.

"We've got to have these things in place to make sure we have water in years to come."

As of Tuesday, July 14, Ben Chifley Dam sits at 39.7 per cent, better then when it was below 30 per cent back in January, but still well below a healthy amount.

"I reckon this week we'll just go over that 40 per cent," he said.

"There's a lot of rain predicted. We could see a flood coming this way, with floods through the Macquarie not uncommon."

Bathurst MP Paul Toole said the water projects will help diversify the city's supply options and improve long term water security.

"In Bathurst, the investment will kick-start the implementation of a stormwater harvesting system and replace the existing pipeline from Winburndale Dam to the Bathurst Water Treatment Plant," he said.

"The new pipeline from Winburndale Dam will allow access to water from the dam so it can be used to supplement drinking water supplies."

Extreme water restrictions still remain in place for Bathurst, with the most recent changes coming back on February 24.

For more on the extreme water restrictions, visit the website at www.bathurst.nsw.gov.au/waterwise.