Northern Tablelands MP Marshall said the issue first popped on his radar about two and half years ago, when the former Guyra Shire Council began looking at it.

In an average year, the town consumes almost double the amount of water it can store.

"Traditionally, that's OK because it is such a high rainfall area, it's always topped up before the community can use it all," Mr Marshall said.

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But with the town growing over the past decade and more "inconsistent and severe weather patterns", the demands on water had become more strenuous.

"Council did a lot of work with Water NSW to really crunch the numbers," Mr Marshall said.

"There were a number of options - this wasn't the cheapest, I think it was in the middle in term of cost, but in terms of resolving the issue long term, it was the best option."

The $13m pipeline was settled on, and the federal government promised to fund half of it - however, it later backed away from its promise.

"I didn't want to see the project derailed, so I went to the [NSW] government and proposed funding the whole lot," Mr Marshall said.

Construction started in February and is expected to finish in August, which will "really save Guyra from running out of water".

Mr Marshall said it took about 16 months to go from business case to starting construction.

"You have to be quite forward thinking when it comes to water projects," he said.

"You have to put your shoulder to the wheel and fight like buggery to get it. It might not happen tomorrow, but something like this is worth time and effort to pursue.

"If you're not in there slamming the table, there are plenty of other MPs with projects just as deserving ready to take that money."

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