Primary Industries, Lands and Water Minister Niall Blair was in Orange Friday to re-state the government’s commitment to investigating options for the dam near Canowindra.

Mr Blair said: “In the coming weeks I will announce the successful tenderer for stage two, to conduct a detailed feasibility study into a possible new dam at Cranky Rock.”

He said the site had been moved from the Needles Gap site to Cranky Rock to reduce environmental damage.

“If Labor had done their homework and read our study they would have realised the Cranky Rock option has been identified as the one most likely to minimise environment and heritage impacts.

“Those that stand in the way are standing in the way of making sure we have the water security for the future.”

He said the study should be completed by October next year.

Belubula Landholders Association chairman Michael Payten said the dam was vital for farmers and jobs.

“It is the dam that should have been built a generation ago. A big regional water solution like this will be fantastic.”

Mr Payten said it was “crushing” to see the damage from floodwaters and droughts.

“Winter after winter the floods are coming but within a summer we are going to be standing on the floor of the river again.”

He said mining companies wanting to start projects that would provide hundreds of jobs were stalling because of a lack of water.

However, the State Opposition said the dam would cause significant damage to the Cliefden Caves and should not proceed.

Shadow Minister for the Environment and Heritage, Penny Sharpe, who was also in Orange on Friday said: “The failure of the NSW Government to act to have Cliefden Caves nominated for state heritage listing is a travesty.”

Orange Speleological Society president Ian Curtis said: ““The fossils at Cliefden are as significant as those in the Canowindra Age of Fishes Museum.”

Save Cliefden Caves secretary Harry Burkitt called for a heritage listing for the caves.