Councillors discussed the matter in closed session, but the resolution released publicly was only to note the report and authorise the general manager to continue talks, which have been ongoing since 2012.

The original agreement gave CVO 10 megalitres a day of treated effluent for the life of the open-cut mine, which is now closed.

Water is still provided for free, although the council saves thousands of dollars in fees for effluent it would otherwise have to dump in the Macquarie River.

CVO has previously argued to keep it that way, saying Cadia East was an extension of the total operation, while the council argued it was a new project.

Orange mayor John Davis said negotiations were positive but much had changed in the past 17 years.

“All agreements have a time limit, they’re not forever,” he said.

“You would think that water … as the years go by, does get more relevance in regard to pricing.”