The NSW Government is to initiate a $65 million Murrumbidgee water saving plan that is due to contribute to targets in the impending Murray Darling Basin Plan.


The plan, designed to upgrade water efficiency in the region, will take 12 months to reach completion and is hoped to save 33 gigalitres of water which will be converted to environmental run-off.


It is hoped the program will contribute significantly to the accuracy and quality of water delivery while also improving flood management capabilities.


The Primary Industries Minister Katrina Hodgkinson says the Murrumbidgee project will establish the area as a leader in river management and efficient water use techniques.


Ms Hodgkinson says the improvements will increase the accuracy of water delivery as well as enhance flood management capabilities.


"It's going to involve improved metering and upgrades to waterways and key storages," she said.


"We're looking at minimising evaporation losses at Yanco Creek, at Bundijerry Creek and Old Man Creek. So I think that this funding has been long awaited by many quarters and I know that it'll certainly be very welcomed," she said.


Ms Hodgkinson says the Murray Darling Basin Authority should consider the water savings.


"That's something that I would certainly be encouraging the Commonwealth to consider, but of course it's early days in relation to the plan and that's all a bit up in the air at the moment so we're not sure how the cards are going to fall in relation to that, but I would certainly hope that it would receive very favourable consideration under the plan," said Ms Hodgkinson.