The scheme was based on water pumped from the Macdonald River at Muluerindie being delivered to a concrete balance tank on the Great Dividing Range at Tamac some four miles southwest of Walcha and gravitating from there to a concrete reservoir on high ground off Legge Street. Water would gravity-feed from there into the towns reticulation system.

Plans and specifications for the project were competed during 1950 and the two pumps required at the river were ordered in 1951. They were received in November 1960 and put into storage for several years.

In September 1953 Walcha was told that it was 104th on the priority list and it would be at least three years before construction could commence.

By 1955 inflation had caused the estimated cost of the scheme to increase to £160,000 and the government decided it did not have sufficient funds available for the work. They suggested that a number of town bores might produce sufficient water.

This suggestion was thoroughly investigated by a geologist from the Mines Department. His report reads in part: The rock types are unfavourable for the storage of large quantities of water and the chances of developing a series of bores that would give a constant supply of the required 300,000 gallons per day is so remote that further investigation is unwarranted.

The geologist also confirmed that the Ohio Creek system was quite unsuitable and recommended that the existing proposal for the supply from the Macdonald River be retained.

Site works commenced in June 1964 but it was not until January 20, 1966, that testing and commissioning was completed and the work handed over to Walcha Shire Council. The final total cost of £214,000 was shared equally between the government and the local council.

Walcha was experiencing one of its worst droughts ever when the water was turned on and two weeks later council had to impose water restrictions, which were made worse by the failure of both pumps. It was not until June 1966 that all restrictions were lifted.