General manager Brad Byrnes will source quotes from selected contracting companies due to time pressure in securing an emergency water supply for the township and the need for the council to stimulate the economy during the COVID-19 downturn.

The $1.2 million project involves connecting an existing bore at the rear of Molong's works depot to Molong Water Treatment Plant in Park Street, plus sinking an additional bore.

The two bores combined would give Cabonne an extra 195 megalitres a year - the state government is set to fund 75 per cent of the cost, or $840,000.

A report to councillors from acting engineering and technical services director Matthew Christensen said the time involved with going to tender would cost the council $90,300 in water supply costs to Orange, or $7500 a week.

The council is authorised to source up to 160 litres per person per day from Orange and the state government has given the $120,000 to help cover the cost since the pipeline was commissioned in February.

"The estimated program for construction of bore and pipeline to the water treatment plant is eight to 12 weeks from engagement of the contractors," he said.

He said a tender process would take about 12 weeks, meaning it would be at least 20 weeks before water could be accessed.

"Expedience of the project is critical given the status of water supply for the township of Molong, and the reliance on Orange City Council given the cities current water supply status," he said, acknowledging Orange council might need to implement level six water restrictions later in the year without significant inflows.

"High level risks considered are the ongoing costs of water purchase from Orange City Council, and the risk of reputation due to criticism of not reacting quickly to secure an alternative water supply other than Orange city."

Councillors also resolved to give Mr Byrnes the authority to enter into a contract with the successful bidder.

Molong Creek Dam is currently sitting at 17.5 per cent capacity after falling to 8 per cent.

The council considered utilising dead water from Molong Creek Dam and reopening valves to Borenore Creek Dam but they were deemed less viable.

The Molong Creek option would involve installing a pump to extract the water, but the yields were lower than bores and sedimentation levels were a concern.

Meanwhile, the reliability of Borenore Creek Dam's 80-year-old pipe infrastructure was questioned.