A heritage-listed cave complex in central west NSW has been spared from inundation after the Berejiklian government opted for an alternative water-security project.

The Cliefden Caves, located on private land about 60 kilometres south-west of Bathurst, faced being flooded if the proposed Cranky Rock Dam on the nearby Belubula River went ahead.

Light at the end of the tunnel: heritage-listed caves won't be flooded after the government changes tack. Credit:Phil Maynard

Regional Water Minister Niall Blair said the government had opted instead to lift the Wyangala Dam wall by 10 metres and to build a pipeline linking two lakes in the region.

"We found a better alternative than originally thought that ticks all the boxes," Mr Blair said, adding that water security, flood mitigation and environmental outcomes would be better for the Lachlan Valley.