The revised funding program provided 24 local councils with a base amount of $1 million, with a further $26 million weighted to the most mining-affected communities.

Lithgow Mayor Ray Thompson said it was very gratifying for Lithgow to receive the money.

"We can get a lot done with this amount of money," he said.

Cr Thompson said that it had not been decided what Council will spend the money on yet.

"It will go to Council and they will work out what the priorities are and there will be community consultation as well," he said.

"We would probably want to try and use it on roads and the Main Street but council will decide what they think is important."

Cr Thompson said he believed the Resources to Regions program was a lot fairer this year.

"Local councils got a base of $1 million and then based on per capita of mine workers and last year Singleton missed out on a fair bit of money and they got some this year, so it was just done a lot better," he said.

"But this money is very much appreciated and has come at a good time when our Council can use the money."

The NSW Government's revamped Resources for Regions program, delivered an additional $50 million worth of new infrastructure projects and community programs.

"As a result I am pleased to announced that Lithgow City Council will receive funding of $2,003,494 which can be directed towards community projects, programs and local infrastructure," Mr Toole said.

"I look forward to the council working with the local community to deliver the best results from this grant to bring to fruition needs identified and planned for in its Community Strategic Plan."

Mr Toole said the first six rounds of Resources for Regions delivered $295 million to mining related towns for critical infrastructure and programs, and the revamped fund will build on that success by ensuring funding flows to where it is needed most.

"Every year our vibrant mining towns contribute to the NSW economy, but this success can place extra pressure on local infrastructure or create unique and diverse needs that are specific to mining communities," he said.

"Mining communities and organisations told us what they need and we've received those messages loud and clear, which is why the revamped program will provide funding for a wider range of projects and make it easier for councils to secure funding."

Deputy Premier and Minister responsible for Mining John Barilaro said the changes that have been made to Resources for Regions will not only help create new jobs and drive economic growth, they will also deliver lifestyle improvements and increase the wellbeing of communities for generations to come.

The 24 eligible Local Government Areas are: Bland, Blayney, Bogan, Broken Hill, Cabonne, Cessnock, Cobar, Gunnedah, Lake Macquarie, Lithgow, Liverpool Plains, Maitland, Mid-Western Regional, Muswellbrook, Narrabri, Narromine, Newcastle, Parkes, Orange, Singleton, Upper Hunter, Wentworth, Wollondilly and Wollongong.