Loading Orange has one of the fastest growth rates in regional NSW, with tree-changers attracted by its busy economy, cosmopolitan retail and dining scene and proximity to vineyards. A fattening band of housing estates rings the outskirts. When the local gold mine announced last month it would create hundreds of jobs by expanding its plant capacity, towns struggling to hold onto their residents could only watch with envy. But Orange has its own peculiar problem, sharpened by a year without decent rain, in that it does not lie on a river. Suma Park Dam is down to 27 per cent of capacity. Long-term residents used to worry about whether there would be enough work to supply the new residents with jobs. Now the challenge for the state's 13th most populous town is how to reconcile its growth strategy with a finite supply of water. This drought descended with such ferocity that many towns were half-parched before they started thinking about water supply. Orange was among the few that saw it coming. After the town nearly ran out of water during the drought that ended in 2012, Orange City Council invested $90 million on measures such as expanding its dam capacity, building pipelines and developing Australia's first stormwater harvesting system for potable use. A portion of stormwater run-off is captured from the local creeks, filtered through artificial wetlands and transferred to Suma Park Dam in a scheme that has won international praise. Suma Park Dam is at 27 per cent capacity. In the last drought, it sank down to 23 per cent of what was a smaller dam. Credit:Janie Barrett

Crucially, council kept water restrictions at level two even when the dams returned to capacity, which changed the habits of residents to such an extent that they are now averaging a consumption rate of just 134 litres per person per day - less than half the 284 litres consumed daily in Dubbo and significantly less than the 180 litres in Armidale, each of which are expected to run dry their dams next year. (Sydneysiders are estimated to have consumed 188.6 litres per day per person in October, but the meters are read quarterly so the official figures are not yet available.) "We're a very, very fast growing community with a cross section of industries, so we have an increased need for water," Mayor Kidd said. "We started putting this all together over 10 years ago, but more importantly we put it together with community engagement and education in place. We always have our community on water restrictions, so people become more efficient water users. They're not watering down hard surfaces, not staying in the shower for half an hour, they're buying water efficient washing machines." Orange has a population of around 42,000 with about 300 new dwellings added to the housing stock each year, which Mr Kidd said was well within the limits of sustainability. The city's forward planning suggests it has the capacity to handle 60,000 residents. "You cannot legally, you cannot morally, put out a sign that says 'Closed for business'," he said. But others have concerns. Mr Kidd's deputy, Sam Romano, raised water security as a key issue when he ran for office at the federal election in May, and called for a halt on migrants until more dams were built. "We don't have the water security for ourselves," he told the Central Western Daily.

Loading Mr Romano failed to win the seat for the Shooters Farmers and Fishers and returned to council, and is more tempered in his attitude to new residents. "Orange is open for growth," he said. "We've put in stormwater harvesting, which is a drop in the ocean. We've put in a pipeline from the Macquarie River to feed our main water supply. We've raised the wall at Suma Park. But the region needs more huge dams. That's what the region needs for it to grow, for people to come here." Central West Environment Council president Cilla Kinross does not think there is any sustainable way to grow the population. Even the stormwater harvesting system diverts water from local creeks that are the home to platypus and other fauna, she said. "It doesn't make sense to me as an ecologist for Orange to be seeking to grow its population when the only way it can have sufficient water is to deplete the small rivers that flow through it," Dr Kinross said. "There is talk of pipelines hither and thither, even shifting water from one catchment to another, but short of bringing water from the coast, there isn't enough to feed the current population, let alone more new mines."

Mining is a key component of the Orange economy, with a new mine proposed for nearby Blayney, but health, education and tourism are also major industries. Caddie Marshall, the general manager of the regional tourism office Orange 360, sighed when asked about the drought. "Whenever there's a story in the media about drought, that's when our visitor numbers drop," she said. "I was in Wahroonga on the weekend and I had people coming up to me saying, 'How is it out there? How is the water?' They're worried about putting pressure on our facilities and I think in some instances, not everybody wants to look at a train wreck. We're not a train wreck. We're prospering and thriving." Indeed, business confidence is high. Local fashion and homewares store Sonic has built an international reputation through its online stores, Jumbled and Iglou. Down the road, a new gelato bar, Spilt Milk, has a queue out the door every afternoon. "The spirit of the town is still strong," Ms Marshall said. "We need to continue to do business and the community get that and they rally." Ian Gosper, with the breeding sheep he will take to the abattoir in the morning. Credit:Janie Barrett The spirit may be tested by Mayor Kidd's next idea to make greater use of treated effluent, which council is already sending to Cadia gold mine to free up more water for the town. The residents of Toowoomba - another town without a river - famously voted down their council's plan to introduce recycled sewage to their water supply in 2006. "Sydney was forced into a desalination plant because it ran out of water," Mayor Kidd said. "It's only a matter of time before we're discussing treated effluent."