The village has relied on groundwater run-off to fill a dam and provide water for washing clothes and running showers, but a lack of rain has seen dam levels fall to dangerously low levels.

The grant, which has come from the NSW Government's $15 million Emergency fund, will enable Hilltops Council to install infrastructure to pump water from a bore, which is a cleaner and more reliable source, as well as an extra $54,500 to cart water while the pumping machinery is installed.

"This is absolutely fantastic news for the Bribbaree community, and it's going to make such a huge difference to their daily lives," Ms Cooke said.

"Water is something that so many of us take for granted when we turn a tap, yet there are many who don't have that luxury; with this funding, the Bribbaree community will be able to enjoy a secure water source.

"I'm grateful to Minister for Water Melinda Pavey for enabling this vital project to come to fruition, and to Hilltops Council for putting so much work into the funding application and the background preparation work.

"Unfortunately the dam is very nearly dry so the NSW Government is also giving Hilltops Council an additional $54,500 in funding to cart water to Bribbaree until the infrastructure is in place, which is expected to be October."

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Greg Coltman, president of the Bribbaree Water and Progress Association, explained how much change is in the pipeline.

"Currently there's a dam which was built in 1978 and it continually goes dry - it's fed by rainfall and run-off," Mr Coltman said.

"We have worked with a farmer to gain access to a bore on his land which provides much better quality water, and we are going to pump it into town, and that will make the dam obsolete.

"The NSW Government has offered to pay for this scheme, which is wonderful. It will put spirit back into the town and it's so good for everybody's wellbeing," he added.