The recycled water could reduce the town's water usage by almost two-thirds.

Googong project director Malcolm Leslie said it would mean the town's expected population of 18,000 would use less water than an average Australian community of 6500

"From the outset, sustainability underpinned everything we planned for Googong. The fully commissioned water recycling plant will reduce potable water usage by 60 per cent," he said.

The recycled water would be used on Googong's parks and ovals. As well, it will be given to residents who can use it for non-potable uses.

It will be delivered through an existing network of pipes and taps but these will be purple so they are distinguished from potable water.

The system was funded by Googong's developers Peet and Mirvac and is managed by Queanbeyan-Palerang Regional Council.

Queanbeyan-Palerang Regional Council mayor Tim Overall said the water would be treated to a high standard and there was a low risk of negative health effects.

"This is a game changer. The Queanbeyan-Palerang region has seen significant expansion over the last decade, in part due to the development of Googong, which has brought strong investment and population growth," he said.

"As we grow, it's important we take a sustainable approach to our natural resources."

IN OTHER NEWS:

The plant comes as Canberra dam levels are nearing 100 per cent. The combined volume of the four dams was 99.5 per cent as of Monday afternoon, according to Icon Water. Googong Dam is the only dam not at 100 per cent, it is at 98.7 per cent capacity.

It's a far cry from earlier in the year when it was feared Canberra would face water restrictions by the end of 2020. Dam levels dropped to 45 per cent in February.