TasWater recently donated $10,000 to Rural Business Tasmania, who monitor and distribute the funds to farmers in need.

The fund helps to assist farmers during times of financial hardship, in the past it was activated to assist during times of flood, drought or other significant event that impacts the agricultural community.

Rural Business Tasmania chief executive Elizabeth Skirving said the organisation was heartened by the donation.

"Rural Business Tasmania, as Tasmania's primary industry business and financial management experts, is delighted to have been trusted with the large donation from TasWater," Ms Skirving said.

"A donation of this size will fund numerous drought-affected rural businesses."

TasWater acting general manager corporate and community relations Ruth Dowty said she hoped the funds would help support families in need.

"As we start heading into the drier months, it is important that we all use water wisely so there's enough available for when we need it most," she said.

TasWater service delivery scheduling coordinator Ashlee Rieper said Rural Business Tasmania was the selected organisation to receive the donation due to the great work they do supporting families.

"Our staff wanted the funds to not only go directly to supporting Tasmanians but more specifically rural families on the East Coast, which were the hardest hit by the summer bushfires and water restrictions," Ms Rieper said. Ms Dowty said essential workers have dug into their own pockets to do this and TasWater was happy to match their contribution.