Reducing the number of discarded cigarette butts will be a focus of the campaign, to be known as the Banishing Bathurst Butts project.

Bathurst MP Paul Toole said $1.1 million had been distributed to councils right across the state in the war on rubbish.

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"Cigarette butts are consistently the most littered item in NSW every year," Mr Toole said.

"I hope our local area can set a great example for innovative projects to help reduce the millions of butts littered each year and, by doing so, clean up our environment."

The Banishing Bathurst Butts program being undertaken by Bathurst Regional Council is focusing on 12 sites in the central business district.

It will focus on public transport terminals, parking infrastructure, thoroughfares and entryways to shopping centres by installing 25 cigarette butt bins and signage to encourage compliant behaviour and reduce cigarette butt litter.

More than 200 litter prevention projects run by councils, businesses and organisations have been funded so far with incredible results.

Some projects have recorded up to 80 per cent reduction in litter in their targeted hotspot.

Cigarette Butt Litter Prevention Grants can be used to fund projects that work with stakeholders to deliver local cigarette butt litter prevention projects to answer local needs and contribute to achieving NSW goals in long-term litter reduction.