A total of $250,000 is recommended to be directed to the project involving the creation of a pipeline to allow an alternate water supply to the aquatic centre to create sustainable water-based recreation for the area.

The project, which has involved discussions with the Riverina Water County Council, was endorsed by council last month.

The present water supply for the man-made lake is via the Billabong Creek system with council allowed to pump water once the creek reaches a certain level, but in sustained dry periods the lake dries up and negatively impacts on the town's economy.

Also earmarked for funding are the creation of irrigation systems at Morundah and Boree Creek with the latter to ensure Tim Fischer Park remains green all year round.

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Public toilet upgrades at the Rand recreation and memorial hall and Oaklands cemetery are also recommended for funding as are a Bureau of Meteorology-approved weather station and Morundah Theatre improvements.

Grant guidelines require eligible projects be completed by June 30 next year and lead to the employment of locals, contribute to economic activity or lead to the retention of business, services and facilities.

The drought committee met on October 2 to determine the list of projects to be funded.

A total of 19 projects were considered on the day with attendees assessing the projects based on the broad community and financial benefits and their ability to be completed by mid next year.

Missing out were Corowa District Landcare and Riverine Plains projects, a council-wide silo art project and an alternative water supply for Balldale which meets the Australian Drinking Water Guidelines estimated to cost around $1 million.