Hilltops Council will receive $1 million for infrastructure and local community projects in the latest round of drought relief funding.
Hilltops council mayor, Cr Brian Ingram, said the federal funding would be well accepted.
"The drought is really starting to bite and you can see the morale of people dropping, so any funding that enables council to create extra employment or upgrade the gravel road network for farmers will benefit everyone in the shire," Cr Ingram said.
Riverina Nationals' MP and Deputy Prime Minister Michael McCormack said the funding, under the Drought Communities Programme Extension, was part of a $1 billion extension of the government's existing drought relief.
"This suite of measures goes to the heart of what matters to these communities. From small businesses to primary producers, we are working with communities to take the pressure off one of the worst droughts in history," he said.
"We are working on measures to assist in the recovery when the rains come, which includes the government's billion dollar investment in water infrastructure.
"We have been listening to our regional, drought-stricken communities and we will continue to listen and respond to this drought as well as support those in need. We will not walk away from those communities, not now, not ever."
In addition to the Drought Communities Programme, the next round of Building Better Regions Fund will be available to 128 local government areas which have been made eligible.
These areas will also receive additional Roads to Recovery Funding.
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