Orange City Council has renewed the offer, which gives residents between $100 and $750 back on an installation.

The amount depends on the size of the tank and whether it is connected to the household's toilets or washing machine, which do not require drinking water.

Councillor Stephen Nugent installed tanks eight years ago, had them connected to his toilets and washing machine and was able to claim the rebate.

His family of four at the time used 126 kilolitres a year and cut it to 62 kilolitres a year after the tanks were installed.

While the savings have been less during the recent dry period, he has still been able to cap usage at 105 kilolitres.

"I certainly would recommend it, it has made a difference," he said.

Mayor Reg Kidd, whose rural property relies solely on tank water, said in years gone past, tanks were perceived as presenting a health hazard and households stopped using them.

"A lot of tanks now have filter systems to stop anything coming into the tanks and there's some good deals - I've been looking myself and there's a great one for $699, it sits flush against the wall and it's made out of plastic, so t's long-life," he said.

"If you can collect that water off the roof, you can save a lot of potable water - there is a fair amount of water used in the toilet and about the yard, washing the car and watering the plants and the lawn."

The rebate program is only available to those already on town water and there is a limit of one rebate per house - rebates can only be claimed once the tank has been paid for and installed.

To access the form, click here.

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