State and federal governments have put up $350 million for water projects in New South Wales.

The big funding pile will be distributed state-wide, authorities say, for water-use reforms and new irrigation efficiency projects.

The new package will include expanding the successful NSW Irrigated Farm Modernisation Project, introducing a new round of funding under the Private Irrigation Infrastructure Operators Program and boosting funding under the Commonwealth On-farm Irrigation Efficiency Program for NSW.

“The types of irrigation infrastructure upgrades that these programmes provide will improve on-farm water efficiency and productivity, whilst providing a share of the water savings to the Commonwealth for ongoing environmental use,” Parliamentary Secretary to the Minister for the Environment Senator Simon Birmingham said.

“And it is not just irrigators who see the benefits of such investments. At the local level, benefits flow on to other local businesses and services during construction and beyond,” he said.

NSW Water Minister Kevin Humphries said the funding package will result in better use of vital water resources across irrigation communities.

“I have listened to the concerns of industry and the community and have been working with the Commonwealth to develop a better package of projects to ensure the best outcome for irrigators, regional communities and the environment,” he said.

“In recovering water for the environment, our key priority is to ensure the Murray-Darling Basin remains Australia’s food bowl.

“I look forward to continuing to work with the NSW Government to achieve positive outcomes for communities in the Murray-Darling Basin,” said Senator Birmingham.