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Illawarra Coal will contribute almost $2.9 million towards a community project after allegedly taking surface water without a licence over a five-year period.

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A Boggabri coal mine will have to install more accurate water meters and report four times a year about its water use under an enforceable undertaking (EU) with the NSW Natural Resources Access Regulator (NRAR)

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NRAR officers will inspect up to 100 sites throughout central Sydney suburbs this month to make sure they are complying with the water laws.

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Thousands of native fingerlings have been released into the Namoi River at Wee Waa following enforcement action by NRAR.

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Outreach officers will be visiting properties in the Tumut region next week to help water users comply and equip them with the right information for their situation.