Financed under the Drought Stimulus Package the purpose of the funds is similar to that of the federal funds, stimulating local economies hard hit by the drought said the Member for Bathurst Paul Toole.

"The funds are to support a range of projects and initiatives that will encourage the flow of money through the local economy, generate jobs, aid business and help the community," he said.

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"We want to see the funding spent responsibly, but also as quickly as possible and for Blayney this also includes support for its villages."

Blayney Shire Council general manager Rebecca Ryan said that council was still working through the guidelines for the project.

"We're reviewing what potential projects council and the community have that meet the criteria and either missed out on funding, either from the Drought Communities Program, Stronger Country Community Funds and other grants, or are projects that could be bought forward," she said.

One such group is the Blayney Men's Shed who have missed out on funding from the federal rounds of drought funding twice, and are hoping that this time it will be a case of third time lucky.

"We're creating a community garden that includes putting in two large water tanks, a reticulated water supply, a potting and storage shed and wicking beds to grow the vegetables in," said president Ian Tooke.

"This is a true community project and we have both St Joseph's Catholic Primary School and Blayney Preschool wanting to be a part of it."

Mrs Ryan said that as council had already called for expressions of interest for the DCP funds, it would be unlikely to go through the same process again.

"With the DSP funding we will be working with Department of Primary Industry and Environment staff to develop each project," she said.

"As soon as possible at a future council meeting we will be shortlisting a number of project concept plans for assessment and review."