The construction of a 17.9km water pipeline in Murrumbateman and Yass is complete.
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The pipeline will service up to 3,000 people in the village and improve the water quality in the area.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the project will dramatically improve water quality and supply in Murrumbateman.
"This project is part of the Australian government's commitment to strengthening Australia's regions by improving the productivity, employment and workforce skills of Australians," Mr McCormack said.
"This was made possible with funding from the Australian Government, the NSW government and Yass Valley Council."
NSW Minister for Water, Property and Housing Melinda Pavey said the NSW government's Restart NSW program has provided funding to more than 750 local projects.
"Over 350 projects are now complete and a further 395 are in various stages of delivery creating a stronger and safer regional NSW," Mrs Pavey said.
Senator for NSW Perin Davey said the area is currently serviced through a water supply system, which uses water drawn from ground water sources and, while it undergoes a disinfection treatment process, it can still be below average quality.
"This substantial investment will ensure water supply copes with demand, especially during summer," Mr Davey said.
Member for Goulburn Wendy Tuckerman said local jobs were created during the project, as well as an ongoing position following its completion.
"The project is a huge boost for local residents with the potential for an estimated 170 new jobs to be created thanks to the potential housing construction activities now the project has been completed," Mrs Tuckerman said.
"The major infrastructure project is now complete with the reservoir full of water from the Yass Water Treatment plant after successful commissioning of the pipeline, pump station and reservoir."
"It has been a massive undertaking for Council staff and contractors and I'm pleased to say that we are now ready to supply water to people of Murrumbateman," said Yass Valley Mayor, Rowena Abbey.
"I would like to take this opportunity to express our gratitude to the Australian and NSW Governments for the financial support that made this water transfer project possible.
"I would also like to congratulate the Yass Valley Council Infrastructure and Asset team for its hard work in overseeing the management of this significant project for the Local Government Area."
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