A NSW EPA spokesperson said the authority was aware of the proposed development and has lodged a submission during Wagga City Council's development application process and awaits a response from the applicant.

The submission has "sought further information" from the applicant to confirm that the site complied with any siting restrictions in the NSW EPA Solid Waste Landfill Guidelines relating to landfills in drinking water catchments.

It has also requested the applicant provide "additional information and clarification" regarding the management of existing waste material at the site, as well as potential odour and noise impacts.

The proposal looks to use the old Wool Combing Facility, converting its effluent evaporation ponds into a dumping ground for recycled and non-odorous materials including waste from the Visy Mill at Tumut.

Eunony Valley Association president Bill Schulz has concerns for "the very high risk" that the site's water run-off will spill into the Murrumbidgee floodplain and contaminate the river.

"It is just way to high a risk in our belief to be allowed to happen," he said.

"There's a high risk of water run-off from this site infiltrating the aquifers or overland flow into the Murrumbidgee River and commercial bores from southern NSW water supply, as well as stock and domestic bores for the local community."

Mr Schulz described the proposal as "horrendous" and "quite remarkable" that the site could be used a "dumping" ground for Visy Mill at Tumut, which processes waste transported from Sydney.

"The proposal is for the same type of land and rubbish use that was proposed at Gundagai, which was knocked back by court order on the basis of impact to underground and surface water run-off," he said.

Riverina Water engineering director Bede Spannagle is not concerned that its nearby Gumly pumping station could be affected by the proposed waste facility.

Mr Spannagle said the development application will not be approved if issues are identified.

"We assess hundreds of development applications each year to see how it affects the water - not just here, but in other areas as well. We will assess this one the same and any concerns that we have will be raised with council," he said.

"It won't get approved if there are any problems with run-off."

The Daily Advertiser contacted the site developer Chris Egan for comment.