Canberrans love to day trip to the rural location and a great many of them decide to make the move more permanently.

It is no secret that the biggest challenge to the growth of the region is the lack of a suitable water source for future development and this is a fact that has been discussed for years.

It is therefore somewhat of a surprise that Queanbeyan-Palerang Regional Council has only recently decided to halt development in the town.

While background work on major proposals can continue, no project can be green lighted by the NSW Department of Planning until the water situation is remedied.

Council says it is investigating sites for water and has found two prospective production sites, but there is still a chance these will not be suitable.

The council claims that while it has been "mindful of the groundwater situation" for years it is proposals for two large redevelopments that have brought forward the water search.

The council is also reviewing the Bungendore Land Use Strategy and Structure Plan, with that, and the result of the water study, set to be revealed in August.

The release of these plans could have major ramifications for the village in the future, particularly if council does not find an adequate water source in one of the two sites it is investigating.

Bungendore is allocated enough water to service about 5000 people and while enough for now, the population is expected to more than double in coming years.

Notwithstanding the delay on these two large proposals the threat of running out of water to sustain projected growth must be playing on the minds of the village's residents.

While some are threatened by what they see as the end of the rural village lifestyle, others accept that population growth is a reality that can keep the economy ticking along.

It is a similar issue to what Canberra is grappling with; how to remain the bush capital while growing economically.