Hunter Water has committed to perpetually fund the cash strapped gardens with sponsorship of at least $50,000 per year.

It is planned that the money will be generated from the sale of biodiversity credits, which will be provided to Hunter Water by the Office of Environment and Heritage through the BioBanking scheme.

“Hunter Water has supported the botanic gardens since its formation 30 years ago, providing financial and in-kind support to help the gardens grow,” Hunter Water’s interim chief executive officer, Jeremy Bath, said.

“Hunter Water supports the gardens due to their position above the Tomago Sandbeds, undoubtedly one of the Hunter’s most important drinking water storages.

“The gardens have faced an uncertain financial future for years, and this sponsorship finally provides them long term security, while at the same time protecting drinking water and koala habitat.”

Biodiversity credits will be paid to Hunter Water, who will sell them and forward the profits to the gardens, in return for protecting the 140 hectares of bushland, which includes a koala habitat.

Parliamentary Secretary for the Hunter, Scot MacDonald MLC, said the BioBanking scheme was one of the NSW Government’s most effective tools for conserving bushland.

“The proposed BioBanking of this site will provide long-term habitat protection,” he said. “Miners, developers, road developers all need these credits as they develop land. When they put in an application to develop land they’re told by OEH that they need however many credits to proceed.

“They go to the market or to places such as Hunter Water to buy those credits. You need those credits, otherwise you can’t proceed with your development.”

Hunter Region Botanic Gardens chairman Kevin Stokes said the sponsorship will allow volunteers to continue what they have been doing for the past 30 years, but with more security their work has not been in vain. 

“Hunter Water has been a great supporter of the botanic gardens during the past three decades, and has on several occasions helped keep us going with a series of emergency grants,” Mr Stokes said.

“The botanic gardens is well equipped to manage the BioBanking reserve, and welcomes the opportunity to permanently protect this important habitat. The concerns of our 150 volunteers about the future of the gardens can now be laid to rest.”

The gardens, NSW Government and Hunter Water signed the BioBanking sponsorship agreement on Wednesday.