CSU's new Agriculture, Water and Environment (AWE) Institute is to be based in Wagga while the city's pre-existing Drought Resilience Adoption and Innovation Hub will receive an additional $2.5 million in funding.

The university has described the new AWE Institute as a "strategic investment" that hopes to optimise farming systems and enhance the health of freshwater ecosystems across Australia and globally.

The institute is set to open by the end of the year, hosting 20 new research positions locally.

CSU vice-chancellor Renee Leon said CSU's new "bold new strategic vision" will be championed at regional campuses.

"Establishing the AWE Institute is an important milestone for Charles Sturt University, one which will prove a cornerstone of the collaboration with our partners on research with impact," Professor Leon said.

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Acting deputy vice-chancellor (research), Professor Michael Friend, said the AWE Institute will build upon pre-established research while producing "more impactful research which benefits regional Australia".

"The AWE Institute will build on Charles Sturt University's existing research strengths in agriculture, water and the environment to generate outcomes which enhance farming systems and freshwater ecosystems in the decades to come," Professor Friend said.

An additional $2.5 million in funding has also been announced to expand the capacity and capabilities of the Southern NSW Drought Resilience Adoption and Innovation Hub based in Wagga.

Part of Minster of Agriculture David Littleproud's $20 million commitment to ag research hubs, the extra funds will help the local centre trial new technologies and practices, fisheries and aquaculture.

The research centre also intends to use the extra funding to refocus itself as an innovation hub, delve beyond centralised drought research, and take advantage of future opportunities that will better the position of farmers and communities around the Macquarie River catchment and the lower reaches of the Darling River.

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