A forecast given to Orange City councillors as part of a report into water management is pointing to above average falls with July singled out for plenty of rain.

"La Nina events still dominate the long range forecast models, with the Central Tablelands 12-month rainfall forecast from Elders predicting a return to near normal rainfall for most months or slightly higher for the next year," it said.

"Month to month there will be seasonal changes that update this model but the trend is certainly positive."

It said on a scale of 10, July was rated eight for receiving above normal rainfall.

The report said Orange's water storage levels had risen from just 21 per cent 12 months ago to now be at 61.9 per cent. The level is now back to the situation in early 2018.

Council was told the city's water management plan would involve a range of projects to prepare for future droughts.

It said a $5 million state government funded pipeline to deliver water from Spring Creek Dam to the Icely Water Treatment plant was nearly finished.

A $7.5 million project, with two-thirds funding from the government and one-third from council, for stormwater harvesting of Blackmans Swamp Creek was in its final design stages.

"Land has been secured and paid for under compulsory acquisition and the project is on track to be completed this calendar year," the report said.

Meanwhile a $5.5 million project to create a pipeline between Cowra and Central Tablelands Water to share water between the Lachlan and Macquarie river catchments 'in times of critical human needs' was also underway. "This project has substantially commenced constructions and is on track for delivery in this financial year," the report said.

Several councillors called for a dam to be built near Dixons Long Point Crossing.

Cr Kevin Duffy said the Ulmarrah Dam would probably cost about $500 million and was vital for the region's future water supplies.

The 700 gigalitre dam would be built 65 kilometres upstream of Burrendong Dam.

However, Cr Stephen Nugent said it was not needed.

"Dams don't produce more rainfall, all they do is hold back the water that would have flowed into Burrendong Dam," he said.