The Forbes Shire Council will put almost $300,000 towards a better irrigation system at the town's golf course.
The Forbes Golfers Association was hoping to secure a state grant to help pay for upgrading the current system, which is 50 years old and prone to leaking.
The group missed out on the grant funding and approached council for help with the project.
The Mayor Ron Penny says council will be getting the money back from the Forbes Golfers Association.
"What we've done is we've given them a loan," he said.
"We've given them a loan in the past, where they paid us back within the prescribed time and did it well.
"So we have all the confidence in the world in these people because there track record is proven and we're only too happy to help them."
The Association will put $1.50 levy on games from next year to pay back the loan.
Councillor Penny says a championship golf course is an important strategic asset for the town.
"We have a magnificent golf course here," he said.
"It had deteriorated because of a lack of water.
"Now that we've got these things in play it means we will have it back up to a standard where we use to have for example a pro-am tournament here, where we gained top class golfers to come and all the rest of it."
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