Earlier this year government officials had announced it would fund a feasibility study into a 90,000 megalitre dam at Needles Gap along the Belubula River that could cost about $150 million.

However this week Deputy Premier Troy Grant and Minister for Natural Resources, Lands and Water Kevin Humphries said the government was considering potential sites along the Belubula River and in the Lachlan River catchment. 

“The NSW government has asked State Water to conduct a high-level analysis of options to improve water security in the region and produce recommendations to the government by December 2014,” Mr Humphries said in a statement. 

Water NSW chief executive officer David Harris said any dam recommended in the initial investigations would be subject to further feasibility and concept studies as well as a full examination of the environmental, heritage, engineering and community considerations.

Member for Orange Andrew Gee declined to be interviewed but said in a statement he did not know the locations of the potential sites but one did not “have to be a rocket scientist to work out where some of them are.”

In the past Cranky Rock, near Canowindra, had been suggested as a potential dam site. 

“The potential sites are currently being assessed and whittled down to see if a clear favourite will emerge - which we should know by the end of the year,” Mr Gee said. “I think it’s best that the folks from NSW State Water be allowed to get on with the assessment process without political interference. So I think they’re going about it the right way. We won’t have long to wait to see what they’ve been working on.”

“Until the assessment is complete, any further enquiries should be directed to Minister Humphries.

Member for Calare John Cobb said in a statement he was “thrilled” the state government was investigating the possibility of creating a dam on the Belubula River.