The NSW Government confirmed this week $900,000 is being allocated to three initiatives in the region, including Sandy Hollow.

Upper Hunter MP Michael Johnsen said the funding from the Drought Stimulus Package would allow Muswellbrook Shire Council to start work on the projects, generating labour for local trades and suppliers, as well as delivering other benefits to the community.

A Community Conservation Land Management and Energy Centre will benefit to the tune of $575,000; Stage 1 of the Muswellbrook Urban Riparian Landcare Master Plan is expected to receive $225,000; and the Sandy Hollow Pocket Park upgrade has secured $100,000.

"Despite an easing of conditions in some areas, the effects of the drought are still being felt," Mr Johnsen said.

"The NSW Government is determined to continue to ensure that the Muswellbrook community obtains the assistance it needs.

"We've worked side-by-side with our local council to make sure funding is allocated to projects that will benefit the community, support jobs and stimulate the local economy.

"We are supporting big initiatives to help our regional towns move towards recovery, measures that relieve financial stress for farmers and water infrastructure to boost drought resilience, but it is just as important to support local businesses and communities.

"The Drought Stimulus Package is funding shovel-ready infrastructure projects and emergency water security projects, putting cash into the economies of the state's hardest hit drought areas as well as towns doing it tough."

More than $2 billion has been made available through the NSW Government's Emergency Drought Relief Package, while regional water security is a focus of the $1 billion Safe and Secure Water program and the $4.2 billion Snowy Hydro Legacy Fund.