Environmental and planning rules could be circumvented to fast-track dams, bores and water pipelines under emergency drought-busting laws being considered by the Berejiklian government, as it joins with federal counterparts to inject $1 billion into getting the critical projects built.

Under the proposal, Water Minister Melinda Pavey would be able to direct Planning Department bureaucrats to speed up the construction of water infrastructure by up to two years by slashing requirements to conduct biodiversity surveys and leaving planning decisions to WaterNSW.

Water Minister Melinda Pavey is set to receive powers to fast-track drought-critical projects. Credit:Joel Carrett

Details of the proposal, to be discussed in cabinet on Monday, can be revealed as the federal and state governments prepare to commit more than $1 billion to a dam construction program, including major upgrades to the Wyangala Dam near Cowra in central-west NSW, the Dungowan Dam west of Port Macquarie, and a new dam on the Mole River in the state's north.

There is not yet a business case for the Mole River dam, which could cost up to $400 million.