Textiles Recyclers Australia (TRA), in conjunction with Bathurst Council, are currently in the third month of a trial which takes old clothes, handbags, shoes, towels and sheets and turns them into useable items such as rugs and blankets.

Maureen Taylor is the co-founder of TRA and said Orange could be next in line to test it out.

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"I know Bathurst Council might be keen to roll it out to Orange and also Parkes as part of the plan to service the whole region out there," she said.

"To be honest, we wanted to have some sort of impact in the rural areas of NSW because we know there are quite a few companies similar to ourselves concentrating on capital cities but nothing was happening in regional areas.

"I'd be speaking out of turn if I said I knew what was happening in Orange. I just know they are definitely on our radar and we would like to help the council up there."

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TRA repurposes the clothing, with the first bin for quality wearable items that are sorted and sent overseas to developing countries, and the second and third bins taking items that are damaged for recycling either into new clothing or for use in other industries.

When asked about the possibility of implementing this program in Orange, council communications officer, Allan Reeder said: "It looks like Bathurst's trial of recycling fabrics and textiles is off to a good start. There's a huge volume of clothing in the community and a lot of interest among Bathurst residents.

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"It's a partnership between Bathurst Council and a commercial company to see if a market can be developed that can keep fabrics out of landfill. Through our regional waste organisation Netwaste, Orange City Council is looking forward to seeing the results of the trial."

Ms Taylor added that they too would need to wait for the facts and figures from the Bathurst trial before committing to anything.

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"I would say by the middle of March, at the latest end of March, we could have a similar process in place for Orange," she added.

"The fact that Orange Council is now well and truly on our radar, we probably see them as a bit of a priority going forward to join our program."