David Farley at a Griffith ‘meet the candidates’ forum. Photo: Oliver Jacques.
UPDATE: This article was updated on Wednesday 30 April to include input from the NSW Department of Climate Change, Energy, the Environment and Water.
The NSW Government has rejected an application to fund a feasibility study into transforming Lake Coolah and Lake Mejum near Narrandera into a water storage site, which advocates say could “drought proof” the region.
A group led by Narrandera businessman David Farley applied for a grant under the National Water Grid Fund January 2025 round, a program that supports “nationally important” infrastructure that enhances water security and access.
The NSW Department of Climate Change, Energy, the Environment and Water assessed and rejected the application.
“Unfortunately [your] expression of interest was deemed unsuccessful,” the department said in an email.
“The department led the assessment and evaluation of the project against the mandatory criteria published in the Program Guideline. Independent probity advisors provided oversight to ensure a robust, fair and transparent process was followed.
“We encourage you to continue to explore funding opportunities for your project and will advise you when the next round of National Water Grid Fund expressions of interest open.”
Mr Farley was furious at this decision.
“[It’s a] disappointing outcome and consequence after a powerful amount of work across the Murray Darling Basin area seeking and securing support for the feasibility study,” he said.
“The outcome reignites the question, ‘Is democracy failing in regional Australia?’
“With Australia’s history of droughts and floods, aligned with the demonstrable facts … of a forecast population of 48 million citizens in the next two decades, a project of the example of Lake Coolah must be in the scenario planning if Australia desires food security, affordable food and domestically grown and processed safe food.”
The NSW Department of Climate Change, Energy, the Environment and Water said the process was competitive.
“Our Department carries out a thorough assessment and evaluation process to determine which proposed projects are put forward including making sure applications meet the mandatory criteria, outlined by the Australian Government and the NSW Government, and using independent probity advisors to ensure the process is robust, fair and transparent,” a spokesperson said.
“EOIs must be proposed by a registered entity or organisation with an Australian Business Number or equivalent such as a Local Council, Local Water Utility or agricultural company. In this case, the Lake Coolah project EOI was submitted by an individual.
“One of the considerations for the NSW National Water Grid Fund Expressions of Interest (EOIs) is that eligible projects must have secured up to 50 per cent of the funding first before they can be considered by the Commonwealth.
“The Lake Coolah application was seeking $550,000 for a feasibility study. However, to be eligible the applicant needed to have secured funding from another source first at the time of submitting the EOI.”
Mr Farley is meeting with NSW Government officials on Wednesday 30 April to discuss why his application failed to “better equip and position the next application”.
For many years, Riverina councils and irrigators have urged government to consider creating a channel to make the two natural lakes located 12 km from Narrandera into a permanent 50,000 megalitre dam.
Narrandera Council made its latest pitch to government to fund the feasibility study in November 2024 and this was backed up by a joint call to do the same from Griffith City Council and the Griffith Business Chamber. Leeton Council has also supported the push.
In March 2025, independent candidate for Farrer Michelle Milthorpe visited Lake Coolah and expressed her support for a feasibility study.
“[It’s] a site with real potential to help secure water for the Murrumbidgee Irrigation Area. The local council, with support from surrounding local government areas, has requested a feasibility study into using Lake Coolah as an additional water storage facility. I support this study,” she said.
“Water storage and shortages are becoming a wicked problem, and we need to seriously investigate solutions like this.”
Independent candidate for Farrer Michelle Milthorpe at Lake Coolah. Photo: Michelle Milthorpe.
The fight has been going on for more than 40 years.
In 1980, a NSW Government body called the Water Resources Commission published a paper outlining the benefits of a Lake Mejum water storage scheme and what was needed to make it happen.
“The concept of the Lake Mejum Scheme is based on the utilisation of water derived by diversion to the lakes of surplus Murrumbidgee River flows arising from spills and other storages, contributions from downtown tributaries, oversupply and irrigation cutbacks. Additionally, the presence of a large body of water in close proximity to the centre of demand will further increase the efficiency of utilisation of the present resources of the Murrumbidgee River,” the paper stated.
