In a bid to increase housing stock in the area, Gilgandra Shire is offering rate reimbursement for the first five houses built on it's new Aero Park Estate. .

The reimbursement will cover the first three years of council charges, provided the house is built and occupied within two years of signing the land sales contract.

The blocks range between about 1200 and 1900 square metres.

"It's an incentive by Council to encourage people to build on the blocks straight away," Gilgandra mayor Doug said.

"Plus to encourage newcomers.

"At the moment there's 22 blocks we're letting out in one street. We've got another 15 blocks in the adjacent street, which we're not releasing yet."

Cr Andrews said Council has had trouble attracting private investment into local housing.

"And even when Council develops, we only do it on a cost recovery basis," Cr Andrews said.

"You've got to secure the land to start with, then you got to put the infrastructure on it. That's the water, the sewer, the curb and guttering, road sealing.

"We've priced the land purely on what it costs us to develop the blocks."

The incentive, announced 28 May, comes a day after the council published on it's website it's budget for the 2024/25 financial year.

Gilgandra ratepayers will pay another 4.5 per cent on general rates, the maximum the council can raise it each year under NSW government legislation.

Water charges for Gilgandra township and Tooraweenah village have increased by five per cent, while sewer charges for Gilgandra township have increased seven per cent.

The council said the water and sewerage charges increased in the township to cover replacing aging infrastructure. The township's $25 stormwater charge will remain the same. 

Cr Andrews said his shire had to raise the general charge out of "basic financial necessity."

"You've got a situation where the consumer price index is around six per cent. The government in their wisdom, allow us to increase rates by this cap of 4.5 per cent," Cr Andrew said.

"We're dropping behind 1.5 per cent each year by taking the 4.5 per cent."