Googong's water recycling system is producing good quality recycled water, however it won't be connected to homes until mid-July.
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The system is one of a variety of measures for which the township was awarded a "green star" for sustainable development earlier this year.
A spokeswoman for the Googong Township said water from the integrated water cycle system was being discharged into the local environment until further approvals were finalised for the reticulation to home.
"There has been a slight delay in these final approvals as there are many procedural requirements involved, across a wide range of stakeholders," the spokeswoman said.
She said Googong Township was working closely with Queanbeyan-Palerang Regional Council to finalise the remaining procedural requirements.
"All going well, we envisage recycled water will be connected to homes early to mid July," the spokeswoman said.
Googong assistant project director Craig Harris was part of the team who thought up the the water recycling network and now lives in Googong.
"As the years went by and Googong developed, I believed very strongly in the masterplan," Mr Harris said.
"I think it's a great plan and that's when I decided that we wanted to be part of the community. We put our money where our mouth is and here we are," he said.
Mr Harris refers to Googong as a "self-contained" township, which will be built over the next 20 years.
It will eventually be home to 18,000 people in 6500 homes. Currently, about 400 homes are occupied and about 250 homes are under construction.