The Mayor of Narrabri Shire Council, Conrad Bolton, says he's disappointed the Council has been overlooked in Round One of funding.
The successful applicants were announced on Thursday by the Deputy Premier Andrew Stoner.
They include infrastructure projects in Cobar, Lithgow, Ulan, Muswellbrook, Singleton and Wollongong.
Mayor Bolton says Council plans to submit the Narrabri Airport for consideration again in Round Two.
"We're going to have a lot of this Fly-In-Fly-Out on the back of the Maules Creek and potentially the Santos expansion and the Boggabri Coal expansion," he said.
"Those sorts of activities are going to require a lot of Fly-In-Fly-Out crew to make sure that happens and, at the moment, the Narrabri Airport doesn't have the capacity to support the type of aircraft that will be required."
Round One of amounted to $42-million it total.
But Conrad Bolton says the Airport is not the only piece of infrastructure in urgent need of an upgrade in Narrabri.
"There's quality issues with the water in Narrabri for the residents and we need to establish some new areas of take," he said.
"It's the quantity that we need, and the infrastructure to actually hold that quantity, that's going to allow Narrabri to expand,"
Mayor Bolton says another area where money will need to be spent sooner rather than later is on the Boggabri sewer upgrade, which he says was built in the 1960s and has now reached its capacity.