Orange mayor Cr Reg Kidd said Orange City Council and the Cadia mine management were in discussions about setting up the plant at the mine, south of Orange.

Cr Kidd said the plant could filter 3.5 megalitres of 'dirty water' a day into drinking water quality. He said Orange's daily use was about 10 megalitres a day.

He said while the plant would serve Cadia's needs most of the time, during drought it could be used to supply water to Orange residents.

Cr Kidd said they would look for government funding for the project.

"You can filter the dirtiest of water to better-than drinking quality," he said.

"Our engineering people are looking at it."

He said the plant and stormwater harvesting were key tools in the battle to provide more water for Orange's future.

Orange's current stormwater harvesting was highlighted by state water minister Melinda Pavey this week in the release of a 20-year plan to deliver sustainable water resources to NSW communities.

"We're exploring a range of options, including boosting water recycling across communities for watering crops and gardens, fighting fires, flushing toilets and reducing pollution in our waterways," she said.

"Already, about 70 percent of local water utilities recycle water. Treated stormwater is being used to provide up to 25 per cent of Orange's supply."

Cr Kidd said planning was well underway for stage two of the city's water harvesting scheme.

The Blackmans Swamp project will seek to harvest stormwater in a park area between Jilba Street and the Northern Distributor Road in East Orange.

He said Orange's lead in stormwater harvesting was now being followed in other areas. "Bathurst are looking at it at the moment, I believe Dubbo is [too]," he said.

Cr Kidd said other schemes to be investigated included recycling greywater, which is the water washed down sinks and drains all over Orange from showers, dishwashing and other residential uses.

He said potable water was wasted away when people washed their vegetables in a sink and there needed to be ways of recycling it. "That's good potable water and you're washing a bit of dirt off your vegetables," he said.

Under the state government's NSW Water Strategy an online map has been set up to highlight water resource projects in the state.

That includes Orange's now-completed $5 million pipeline project from Spring Creek Dam to the Icely Road water treatment plant.

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