Small towns are encouraged to apply for their share of $1 million in drought funding under the latest round of the Tackling Tough Times Together program.
Run by the Foundation for Rural and Regional Renewal, the program supports grassroots projects.
Three tiers of grants are available, with grants up to $20,000, $60,000, and $ 150,000 available to groups that can demonstrate a clear benefit back to their community.
Minister for Regional Services Mark Coulton has been pleased to see funding flow to small towns.
"Around a third of applications made under previous rounds were from communities of less than 500 people, while overall demand for grants was highest in communities of fewer than 5,000 people," Mr Coulton said.
Grants are managed by the Foundation for Rural and Regional Renewal and funded by 15 donors including government, business and individuals.
The federal government has committed $15m over three years.
Deputy Prime Minister Michael McCormack said small projects can deliver big benefits.
"These projects help rural communities with the stress of the drought impacting families and businesses while also contributing to the local economy and infrastructure renewal," Mr McCormack said.
Drought Minister David Littleproud said the program provided important economic stimulus.
"These projects hire local people and use the services of local business," Minister Littleproud said.
"They support events, services and places where the community gathers which is important to emotional well-being and mental health in drought-hit areas."
For more information on the Tackling Tough Times Together program, visit: https://www.frrr.org.au/grants/TTTT