Prime Minister Scott Morrison announced the funding on Tuesday in Blayney as part of a visit to the state's Central West, after meeting with members of the National Drought and North Queensland Flood Response and Recovery Agency in Orange.

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The funding, drawn from a $47 million total, is expected to equate to $500,000 for smaller councils overseeing less than 1000 people and $1 million for larger councils.

Orange, despite being where the Prime Minister set down for the announcement, was not included on the list of councils approved to receive funding through the program, instead they'll be the staging point for a new regional office designed to let the National Drought Recovery Agency stay in touch with affected communities.

Minister for Water Resources David Littleproud said that the line had to be drawn somewhere.

"This is not about anything other than stimulating those economies that are the hardest hit," he said.

Bathurst, Cabonne, Cowra, Oberon and Blayney are among the list of councils that will also benefit from the funding boost, with the money earmarked for use in reducing the effects of the ongoing drought conditions.

Mr Littleproud said the federal government would support the states, but building dams was a state responsibility.

Minister for Education Dan Tehan was also present and announced a further $10 million for independent schools to help parents in need due to the bushfires and drought conditions afford fees.