The energy supplier hosted Premier Nathan Rees and NSW Minister for Water Phil Costa last week for the announcement of the first licence, granted to Veolia Water, to produce and sell the recycled water.

Mr Rees said the construction of the plant will create 64 jobs on the site and the plant's creation will generate $100million of

private sector investment.

He also said the first stage of the recycling network would service seven, large industrial customers at Smithfield and Rosehill. ``This is a clever, new recycled water

network for industrial users in western

Sydney that will save drinking water and create construction jobs,'' he said.

``The first stage of this project uses around 20 kilometres of pipes to service Smithfield and Rosehill. There is potential for a future expansion into other suburbs including Wetherill Park and Liverpool.''

Construction is expected this year.