The councils called for lower electricity prices, better water management and easier water recycling, support for 'drought-proof' industries and earlier intervention with drought relief.

Bland, Hay and Lockhart shire councils have all made submissions to the Committee on Investment, Industry and Regional Developments inquiry into support for drought affected communities in NSW.

Hay Shire provided the inquiry with the 'key points' from a council meeting on drought this month.

"There is no doubt the drought has a significant impact on the local economy including job loses which results in population decline impacting small businesses, schools and other services," the submission stated.

Lockhart Shire's submission urged the government to modify its drought assistance grants to "provide greater assistance to the establishment of drought proof industries".

"By way of example, council is currently in discussions with a potential investor looking to establish an intensive horticulture industry in the shire," Lockhart's submission stated.

"Using the latest technology, the proposal involves the growing of lettuces and other green vegetables and herbs in containerised climate-controlled conditions all year round."

Hay Shire submitted that "cheaper electricity and reliable mobile phone and internet coverage will help attract and maintain businesses".

"The current legislation and guidelines make it difficult to reuse water and other waste materials," the shire's submission stated.

"A total rewrite of the legislation to allow easier reuse of resources will bring about savings to western regions and create business opportunities."

Hay Shire also stated that "a total review of water management across the state is required, including water storage and allocations to rural communities (including) continued investment in water security measures".

Bland general manager Ray Smith said his shire's submission highlighted "the importance of support programs and services such as mental health, drug and alcohol counselling, suicide prevention, rural aid, the National Disability Insurance Scheme and community care packages".

Bland Shire called for "incentive programs to attract professionals to relocate to the areas of greatest need" to offset drought-related loss of population, businesses and services.

The NSW government has committed $1 billion for statewide drought relief.