Les Dean, the president of the Grow Molong progress group, said the tank art design was still being finalised.

He said it would feature several images including telling the story of Sir Thomas Mitchell, his Indigenous assistant Yuranigh and the Mitchell Highway.

The group has been seeking to have a mural painted on the nearby silos but will instead start with the water tank as stage one of the overall project.

He said it had received funding from the Foundation for Rural and Regional Renewal organisation which will be sufficient to complete the project.

"The theme of what we are trying to do is the story of Molong," he said.

Mr Dean said the work would not start until about October.

He said they were working with painters from Orange to do the job.

It is likely to feature images of wattle and native birds as well as a stylised map of the highway from Molong to its end in Queensland.

Mr Dean said they would need to lodge a development application for the work with Cabonne Council.

They will also need the approval of John Holland Transport and Rail which administers the railway structures in Molong.

He said the water tanks would be the first stage of plans to paint murals on the silos.

"Grow Molong aims to make Molong a destination for visitors, some of whom will be silo art enthusiasts who enjoy travelling around Australia to view the outstanding public artworks," he said.

"Molong will feature in tourist promotions, websites and social media pages, putting Molong on the map as a destination to visit."

He said the project was one of 58 community drought-relief projects to be funded by the foundation in a package totalling about $2 million.

The foundation's Tackling Tough Times Together program co-ordinator Deanne Cavalier said the communities needed help after suffering from the drought.

"It's vital to be flexible and support local recovery efforts in a way that meets the needs of each community now and into the medium to long-term," she said.

"That's why we are open to project variations and supporting organisations pivoting and thinking laterally when it comes to their projects and how grant funds are used."

Other groups in the region to receive money under the funding program included the Age of Fishes Museum at Canowindra.

It will receive $7217 for three fossil stands for the museum.