Lockhart Mayor Peter Yates said the success was because of community effort and local council support.

"It was a community effort no doubt about that," he said. "We are a very tidy town and a community-minded town."

Lockhart won the overall state award after claiming two first prize awards and two highly commended awards.

"We've now been recognised for our innovative work, and the overall picture we portray," Mr Yates said.

"It's something that takes the minds off the drought as well."

Lockhart won the Water Conservation Award, in population category B (350-1200 people) for the reuse of water at the Lockhart Sports Ground and Lockhart Central School playground.

Highly commended awards were received for the restoration of the Lockhart Showground grandstand and their Spirit of the Land festival.

Lockhart Shire Council's manager of corporate services, Margot Mildren, said being recognised with these awards is a great honour for the town.

"It is great for the town to be recognised for the contribution made by the community to the town and the council as well ... it has all been fantastic," she said.

Jerilderie was the winner for the Heritage Branch Cultural Heritage Award in category B for the town's development of the Jerilderie Central Library.

Wagga won the Department of Environment, Climate Change and Water Wildlife Corridors and Habitats Conservation Award and the Waste Management and Litter Reduction Award for a population of more than 25,000

Finley received a highly commended award for the Heritage Branch Cultural Heritage Award in population category C (1200-4000 people).