Armidale, Glen Innes and Tenterfield will each receive the funding to address urgent and immediate operational challenges, and establish a working capital fund to supplement flood and disaster recovery.

Armidale Regional Council has been consulting with the storm and flood affected community of Lower Creek to determine what projects would best support recovery and resilience for future disaster events before committing to any projects.

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Local Government NSW president Darriea Turley AM said she was extremely happy to see more funding for the hardest-hit councils on top of the nearly $1 billion in emergency response and relief funding already provided.

"Our councils have been working non-stop during the floods to save their communities and now during the long and challenging clean-up," she said.

"Councils are the closest form of government to their communities and play a vital role in everyday life of regional and rural areas.

"This extra funding is desperately needed by regional councils to shorten the length of the recovery process.

"It is particularly pleasing to see that water and sewerage infrastructure has been recognised as critical infrastructure and provided with recovery funding.

She said this infrastructure had previously been excluded from funding when Disaster Recovery Funding Arrangements (DRFA) were made.

"LGNSW has persistently advocated for its inclusion, and it is a positive step in the right direction to see the NSW Government has listened and is working proactively with local government."

Cr Turley said there are now 58 councils eligible for assistance under DRFA.

"This shows just how catastrophic these floods were and that continued support is needed more than ever," Cr Turley said.

"The damage in many areas is so extensive that DRFA arrangements will be totally inadequate. Additional recovery funding beyond the DRFA is desperately required.

"As LGNSW President, I am committed to ensuring that flood-affected councils are well-equipped and aren't forgotten.

"I am proud of the work being undertaken by councils each and every day as they battle through these devastating times."

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