The government on Thursday announced a raft of measures, including a deal worth almost $100 million with the South Australian government to switch on the state's desalination plant, allowing 100 gigalitres of water to be made available for irrigators.

"Since the budget we have already committed an additional $355 million to step up our drought response. Today's announcement triples this to more than $1 billion since the election, as well as more than $1 billion in new interest free loans, to see people through," Prime Minister Scott Morrison told a press conference.

"This is money into the pockets of all those farmers and graziers who know they have a future, but are currently struggling to keep their operations running as the crippling effects of this drought continue to bite that we've heard from out on the ground. They are backing themselves and we are backing them to make it through to the better days that will be ahead.

Deputy Prime Minister Michael McCormack said the government's latest initiatives would deliver an extra $709 million worth of direct support.

"By redirecting $200 million from the building better regions fund into drought communities and an extra $138.9 million into our roads to recovery initiative, we're getting local projects and infrastructure work underway to keep finance flowing, trades in work and money rolling through local stores."

Minister for Agriculture Bridget McKenzie said a new loans program for small businesses and making existing drought loans interest-free for two years would apply to everything from buying fodder to transporting stock and agisting cattle through to paying staff and purchasing new equipment.

"With $200 million worth of loans committed already, we estimate the new small business program and the changes to the drought loans for farms will see around $1.2 billion issued over the next three years," Ms McKenzie said.

Minister for Water Resources and Drought David Littleproud said the drought communities extension program was going to be available to six new local councils, including Lockhart, Greater Hume and Hilltops. Temora, Coolamon and Bland shires were included in previous rounds.

"On top of the $1 million we've delivered to 122 councils we'll make another $1 million available for those still in need," Mr Littleproud said.

Lockhart mayor Rodger Schirmer said the $1 million could help clear the council's infrastructure projects.

Hilltops mayor Brian Ingram also welcomed the funding.

"The drought is really starting to bite and you can see the morale of people dropping, so any funding that enables Council to create extra employment or upgrade the gravel road network for farmers will benefit everyone in the shire," Councillor Ingram said.

Alan Brown from the NSW Farmers' Wagga branch said people in rural areas wanted more than "another loans scheme" from the government's drought assistance packages.

He also suggested that instead of "just throwing money at councils", funding could have been put directly towards rates relief for struggling land owners.

Junee farmer Martin Honner also believes direct rates relief could help some farmers, but said the biggest issue was water, and making allocations available to irrigators.