NSW gets $180m from Feds to buy Murray-Darling Basin land

A $180 million deal has been done so the New South Wales Government can buy more than 84,000 hectares of land near the Victorian border with Federal Government money.

In exchange for the funds, the water entitlements in the area will be controlled by the Commonwealth, in an effort to lessen the impact of water being taken from the Murray-Darling Basin.

The Nimmie-Caira land near the Balranald township, about 850km west of Sydney, will be bought from 11 owners and supply an extra 173,000 megalitres of water to the surrounding environment each year.

The agreement between Federal Minister for Water Mark Butler and NSW Primary Industry Minister Katrina Hodgkinson was announced on Friday.

Ms Hodgkinson said the Nimmie-Caira project was not just an environmental win, but would deliver funding for Indigenous and community projects in nearby regions.

The deal is part of the Commonwealth's plan to give $708 million to NSW for key projects.