The central New South Wales community of Bundanoon has voted overwhelmingly in favour of a ban on bottled water.

More than 350 people turned out at a public meeting at the town hall last night to vote on the motion.

Only one local resident voted against the proposal, along with a representative from the bottled water industry.

The Bundy on Tap campaign will see the sale of pre-packaged bottled water banned in local shops in favour of reusable plastic bottles that can be filled up for free at filtered water fountains that will be installed on the main street.

The voluntary ban in the Southern Highlands community is expected to be in full force by the end of this year.

Hot on yesterday's news of the planned ban, NSW Premier Nathan Rees ordered all State Government departments and agencies to stop buying bottled water.

The ministerial offices in Sydney's CBD have had to make do with tap water since Mr Rees took on the top job and now that instruction is being extended to all government departments and agencies.

Mr Rees says the move will save taxpayer funds help reduce the impact on the environment of producing and disposing of bottled water.