As the drought continues to take a hold on residents and businesses in NSW, Mr Saunders has written to the NSW treasurer Dominic Perrottet to offer rate relief, working capital and low interest loans.

He said the proposed assistance would be similar to that rolled out across regions which have been affected by the devastating bushfires.

"What has happened to parts of NSW, particularly on the South Coast, has been nothing short of heartbreaking," Mr Saunders said.

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"I applaud the NSW government for taking the action it has to support those people and those communities, but I am calling on those same to be rolled out for our drought affected communities."

Mr Saunders has asked for rate relief for the first six months of the 2020/21 financial year, working capital loans of up to $50,000 and low interest loans up to $500,000 to eligible businesses.

"These are measures that could help keep our towns afloat," he said.

While the NSW Nationals in government has rolled out more than $3.9 billion for drought and water assistance, Mr Saunders said the proposed drought measures would complement existing drought support.

"Some areas have been blessed with rain in recent times, others haven't been so lucky and the reality is the drought is far from over," he said.

"There are people out there who can't pay their rates or other bills, and the pressure keeps building on them.

"That's why I wrote to the treasurer asking for similar provisions to be put in place in local government areas that have been hit hard by drought."