A plastic cover the size of about six football fields will be placed over a reservoir in far west New South Wales to help stop evaporation.
The pool-like cover would be placed over the holding pond at Stephens Creek Reservoir near Broken Hill, an area of almost seven hectares.
Brian Steffen from CountryWater says the cover would stop evaporation.
"That will save about 143 million litres of water each year," he said.
The total cost will be about $840,000, with $700,000 provided by the NSW Government.
Mr Steffen says that includes the cost of testing different designs.
"A lot stronger than a pool cover, but exactly the same theory - cover that water so it doesn't evaporate," he said.
The cover should be in place by early October.
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