On October 12, last year the Coalition Government made "an iron-clad" promise to Palerang Council to provide $1 million for Bungendore water augmentation and $700,000 for improving the quality of Braidwood water.

"The promise was part of a $9.05 million water plan for Eden-Monaro," Dr Kelly said. "Unfortunately that promise appears to have been unfunded."

"But in March 2008, I discussed these and other water projects with our Government's Water Minister, Penny Wong, to see whether any could be saved. We now have the money locked into the 2008-09 Federal Budget as opposed to the Coalition's empty promises" he continued.

Dr Kelly said the latest money followed the resuscitation of $13,257 in funding for the new sound system in Braidwood's National Theatre and the $3.3 million for the town's new Sewerage Treatment Plant.

"As well, there's $120,000 in the 2008-09 Federal Budget for upgrading the dual-use change rooms in Bungendore Park" he said. "This will benefit swimmers using the facility in the summer when they go to the Bungendore Pool and footballers and other sporting organisations using Mick Sherd Oval in the cooler months."

Dr Kelly said commuting Palerang residents, including those from Bungendore, Braidwood, Captains Flat, and Stoney Creek/Carwoola would also benefit from the $23.3 million road upgrades along the Kings Highway from the Defence Headquarters to Queanbeyan.

"This roadwork and increased money for Palerang's local roads under the continuing Roads-2-Recovery program, will make some inroads towards improving conditions for shire motorists," Dr Kelly said. "The roundabout at the junction of the Captains Flat Road and five more overtaking lanes on the Kings Highway should be a very big improvement."