Tamworth MP Kevin Anderson was awarded the water portfolio on Monday following a sudden NSW Government reshuffle which saw Oxley MP Melinda Pavey dropped from the role.

Mrs Pavey had worked closely with Wagga City Council over the past year and in March she signed a memorandum of understanding to top up Lake Albert with 1800 megalitres of water each year.

At her direction a legislation change was being drafted to provide Wagga's council with a specific purpose access license, allowing it to pipe water from the Murrumbidgee River into the lake.

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Wagga City Council general manager Peter Thompson said he has spoken to Mr Anderson and received assurances the project will go ahead despite Mrs Pavey moving on from the role.

"Council has already spoken to the new Minister for Water Kevin Anderson. He has confirmed that from his perspective it is business as usual," Mr Thompson said.

The general manager said he does not expect the change to impact on the delivery of the MOU and special license.

Wagga Boat Club commodore and councillor elect Mick Henderson was concerned about the news of Mrs Pavey's dismissal.

"The deal has not passed officially through parliament yet and she did the sign off so it's still yet to get across the line," he said.

Mr Henderson said it was crucial for Mr Anderson to pick up the Lake Albert pipeline project from where the former Minister for Water had left off.

"What the community needs is for him to get right on board and support it," Mr Henderson said.

"We've got to move forward on this now and we've really got to keep our finger on the pulse of the project."

Mrs Pavey said she was disappointed to hear she would be moving on from her position as Minister for Water but respected the decision.

"I took the Water Ministry during the worst drought on record and to this end I thank the Menindee community for welcoming me under much duress," she said.

"I hope the incredible work in the water space, especially regarding coastal harvestable rights and in redefining the narrative on behalf of farmers, continues."

Wagga general manager Mr Thompson offered his thanks to Mrs Pavey for her efforts in securing a permanent water supply for Lake Albert.

"Council certainly wishes the former Minister every success going forward and recognises her professionalism and strong work results as Minister for Water," the general manager said.

"As Minister she resolved a problem for the Wagga community which had remained unresolved for three generations - that must be acknowledged as a great achievement."

The current aim for the completion of the pipeline project is April however funding troubles could see that pushed back.

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