Under the Australian Government's expanded Drought Communities Program, the City of Busselton is one of 52 local governments eligible to apply for drought relief funding up to $1 million.
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The program was created to provide immediate economic stimulus to drought-affected agricultural communities.
The shires of Bridgetown-Greenbushes, Donnybrook-Balingup and Nannup were also eligible for the funding.
A Department of Infrastructure, Transport, Regional Development and Communications spokesperson said it was identified Busselton's rainfall deficiency was 86.67 per cent.
The spokesperson also said Busselton's combined agricultural and downstream manufacturing employment was 8.21 per cent.
"Although an area may have received some rainfall over recent months, it does not mean that they are not impacted or have fully recovered from drought," the spokesperson said.
"The Government will provide Busselton with $1 million in DCP Extension funding.
"This funding will help ensure a local community remains productive, helps to provide local employment and ensures local suppliers are in business.
"Funding is targeted at local infrastructure and other activities that provide employment for people whose work opportunities have been impacted by drought.
"We do this because drought doesn't just hurt farmers; it hurts small businesses and the wider community as well."
The spokesperson said DCP projects could fund festivals to bring in tourism, create jobs and help the community's wellbeing or create construction jobs and opportunities for people to stop and shop in small towns.
The Mail understands the city has received advice it is eligible to apply for $1 million in funding.
