Council has requested at least $3.5 million of state money for the project, with the expansion of the jail the driving force behind the concept.

The request has been “shortlisted”, putting it ahead of hundreds of other applications, according to Cootamundra MP Katrina Hodgkinson.

It will join seven other shortlisted requests to be assessed by the NSW Department of Primary Industries.

General manager James Davis said council was eager to confirm the specific amount of funding as soon as possible, with the projected needing to be completed by July 2018 to coincide with the expected completion of the jail's expansion.

Mr Davis added that he was pleased to see the projected elevated as a priority and stressed that Ms Hodgkinson had done a “power of work” in advocating Junee’s cause to the state government. 

The sewage treatment project is expected to cost about $8.8 million.

Council has $1 million in reserve for the project and plans to borrow the remaining $4.3 million, assuming the government stumps up the requested $3.5 million.

Junee Shire Council had also previously applied for federal funding, a request which is still being considered.