A lack of government funding has forced Cooma-Monaro Shire Council to put the multi-million dollar Lake Wallace water supply dam project on hold.
At a special meeting of council on Monday night it was decided that the project could not currently move into the 'construction phase' due to the lack of federal and state government financial support.
Council has already undertaken a raft of assessments and the project approval phase is well underway, with the determining bodies now reviewing the documentation.
In the report that came to the council it was noted that; "Until government financial support is received, the Council will complete the Project Approvals phase, and then project will then be put 'on hold'."
The project, which would deliver a secure water supply to the residents of Nimmitabel, is estimated to cost a total of $5.9 million.
Of this, the federal government has already provided $600,000 for the Project Approvals phase. Council needs $5.3M to move forward on the project.
The report stated that council was not able to fund this project internally and had sought government funding however, no firm commitment had been received from the government for financial support.
The report said that if the general community was to fund the project it would be at a cost of $1,360 per water connection (assess charge) and the cost of running this dam annually would be an additional $10-15 per year per water connection.
The council is currently investigating funding options with the government, but until a contract is signed to provide the required funding the project cannot move forward.
Negotiations with the landowner regarding securing the property required for the project are continuing.