Work is underway on the first phase of the Baan Baa town water supply project after a contract was recently awarded.
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Water Resources Drilling has already established a construction site within the road reserve on Harparary Road, and begun bore drilling.
The entire project, which is due to be finished by the end of 2017, when metered water connections will be available in the village.
It is expected to cost $4.46 million, with funds from a Voluntary Planning Agreement through the resources sector matched by the state government through its Water Security for Regions progam.
Initial work on the project began in 2014-15 with geohydrological investigations for the purpose of identifying a suitable location for the production bore.
Geolyse was appointed by Narrabri Shire Council in 2015 to design and supervise the construction of a test bore.