You've nailed it regarding the lack of financial capability of...

You've nailed it regarding the lack of financial capability of regional councils. Thus the NSW government's intervention at Walgett and Bourke. But financial capability is the reason NSW has been funding or part funding water infrastructure programs for many cities, towns and villages across rural and regional NSW for many years (here in my LGA, the state has fully funded new sewerage treatment works in the 3 main towns) so there's no reason it shouldn't continue and very good reason to believe it will now expand. Some clear reasons for this: human and environmental health and ensuring rural communities remain resilient in the face of changing technologies, resource use and practices and the frequent bouts of drought all with related social and employment pressures particularly on small communites.