All residential water users will be given a 50 per cent rebate on their upcoming bills, thanks to an unprecedented decision by Moree Plains Shire councillors.

At last Thursday's ordinary council meeting, councillors unanimously voted to give back to the community at a time when many residents are doing it tough due to continuing drought conditions and a slower economy.

The 50 per cent rebate will return approximately $500,000 to the Moree Plains community, and translates to an average of $150 cash back per assessment, which will be automatically applied to each bill.

Mayor Katrina Humphries said the decision was made following record water usage in the summer quarter, which resulted in an unbudgeted spike in water revenue.

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"Many residents have had to use extra water to keep their gardens and lawns alive during this awful drought," she said.

"With funds surplus to operational needs, and a lot of households doing it tough, council decided to provide a one-off 50 per cent rebate on the bill for March-May, putting the money back into the pockets of those that had spent it, and hopefully providing a boost to our local economy."

Council had previously sought to undertake a local economic stimulus package through the $1m Federally-funded Drought Communities Programme but had been advised that their project was ineligible.

"We are restricted with water fund revenue, as it can only be spent on water infrastructure and operations," Cr Humphries said.

"We cannot spend it on roads or a new playground, for instance.

"With a large number of water infrastructure projects utilising council and state government funds already budgeted for, it was unanimous that the additional revenue be used to fund the 50 per cent rebate.

"It is rare for local government to be able to have the chance to reward its residents, and council is delighted that we are able to provide this one-off boost."

The move is a significant win for many Moree families, including for Jason Moss and Ashleigh Cooke.

When the couple, who have two young children, Andy (three) and Amity (one), bought their family home in Moree 18 months ago, there was no lawn at all.

A few months ago they laid down turf but have since had to keep the water up to it so it wouldn't die.

"We needed a little bit of lawn for the kids," Ashleigh said.

"We turfed it and then the [cost of] water went up," Jason added.

So the news that they would get 50 per cent off their next bill was a welcome relief for the young family.

"I think it's great," Ashleigh said.

"Our water bill has more than doubled since we've been here, so anything's better than nothing."

The 50 per cent rebate will be automatically applied as a deduction on all residential water accounts with consumption for the March-May period. As such, water users should pay the full amount on their accounts as per usual. The rebate will not be applied to state and federal government owned properties.