Dubbo Regional Council is contracting Taggle Systems for the compulsory installation of smart meters at every property connected to reticulated water within the local government area.
The new technology will be introduced to an estimated 17,700 homes and 2300 businesses with work expected to begin in the "coming months".
Community disquiet with the project has included its branding as a "big brother" move.
The council's chief executive officer Michael McMahon has previously indicated that the smart meters would enable the council to detect "excessive water use".
On Friday he released a statement announcing the tender had been awarded for the smart meter rollout.
"Council will fully fund this significant step in water management through its existing budget without the need to pass on any costs to ratepayers," he said.
Mr McMahon did not put a price tag on the project or say if the state government was helping out.
In November the council revealed that it had asked the government for a 50 per cent contribution to either the $3.27 million cost of installing "clip-on devices to existing connections" or the $4.54 million cost of "full meter replacement".
The council called for tenders for the supply and installation of smart meter technology for its entire fleet of water meters, including the development of an integrated water billing platform and a customer access portal, in late 2019.
In Friday's statement the council revealed Taggle Systems would provide it with "multiple different smart meter solutions".
The council reported that the meters would include "solutions for meters that require a full upgrade, one that will be appropriate for newer meters that can be retrofitted and a meter appropriate for larger premises such as schools".
Once the smart water meters are rolled out to each property, the online portal will be launched so residents and business owners can log in and view their water consumption in real time.
"Providing customers with access to their water consumption has many benefits," Mr McMahon said.
"Importantly it will give the customer the ability to track water use and estimate their quarterly water account.
"It also allows our customer to set daily water use targets and be alerted if the target has been met."
The council reports disruption to residents and occupants will be "minimal" with the process taking about 20 minutes for each home and business.
For more information visit www.dubbo.nsw.gov.au/smartmeters.