OXLEY College will receive $2500 to boost the sustainability program through greater student understanding of water conservation.
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The purpose of the project is for students to gain a tangible understanding of the importance water plays in their lives, particularly in growing food.
Oxley plans to install a rainwater tank to help irrigate the permaculture garden and to model sustainable methods of water collection.
Goulburn MP Pru Goward congratulated students and educators at Oxley for their successful Environmental Trust grant application.
"The project aims to instil the value of being 'water wise' by involving students in hands-on activities such as monitoring, measuring and reducing water usage," Ms Goward said.
Environment Minister Robyn Parker said this was just one of 52 grants recently announced in addition to the 80 grants announced last November.
"The combined total of 2013 Eco Schools and Food Gardens in Schools grants is $382,000, and this will have an enormous impact for students and the environment in NSW," Ms Parker said.
"Projects like these funded in the Environmental Trust grant round inspire students and the wider community to consider their environment and empower them to help protect it."
The overall objective of the Eco Schools program is to support schools to develop best practice in environmental education and innovative solutions to environmental issues.
The Food Gardens in Schools Program gives learning opportunities for students, teachers and the school community about healthy sustainable living through growing and harvesting food in school gardens.
The Trust is an independent statutory body established by the NSW Government to fund a broad range of organisations to undertake projects that enhance the state's environment.