State Parliament passed the Water Supply (Critical Needs) Bill, which will fast-track water infrastructure projects in Orange, Dubbo and Tamworth by six to nine months, which have been identified as having critical water supply needs within the next two years.

"This is the breakthrough our regional towns and cities have been waiting for," Mr Barilaro said.

"Improving water storage is critical to the longevity and growth of regional NSW and this temporary legislation allows us to get on with the job of building dams," he said.

For Orange, the priority will be seeking authorisation for changes to conditions on the Macquarie pipeline - according to Mr Barilaro, the amendments would allow Orange City Council to pump outside high-flow events.

The legislation will be in effect for two years and Minister for Water Melinda Pavey would only be allowed to extend it by 12 months if drought does not break.

Orange City Council welcomed the move, with mayor Reg Kidd saying it was "the best news the community of Orange has heard for awhile".

"I'm confident that in due course the normal departmental processes would have dealt with the obstacles which have kept us from using the pipeline more often," he said.

"But Orange needs water now for the coming summer and the government's new critical needs legislation will clear the way for the pipeline to be adding to our water storage very soon."

Infrastructure committee chair and councillor Jeff Whitton said the legislation would allow Ms Pavey to approve the request to lower the trigger point, rather than a government department.

"Up until now, we've had to wait until there was 119 megalitres a day flowing in the river at the off-take point before we could start to pump," he said.

"That's the equivalent of waiting until there was 47 Olympic swimming pools a day before we could take any water. That's been a real obstacle."

Cr Whitton confirmed the council would be asking for a trigger point of 38 megalitres a day as an 'emergency' measure while Suma Park Dam is below 50 per cent.

The submission is already prepared and will be submitted once the legislation is formally gazetted in the coming days.

"For example, during the whole month of July this year we weren't able to pump at all from the Macquarie River because the flow didn't get to 119 megalitres a day," he said.

"In contrast, the flow in July was above the proposed new trigger-point of 38 megalitres on 30 of those 31 days.

"It's a sign of the significant source of water that Orange can now connect to, once this change begins."

Suma Park's catchment is just 179 square kilometres, while the Macquarie River's is 8000.

Orange is predicted to hit level six restrictions in April in a worst-case scenario with no in-flows, but projections have concluded lowering the trigger point for the pipeline could avoid level six completely.

Receive our free newsletters delivered to your inbox, as well as breaking news alerts. Sign up below ...