A Queensland resource management group is making its own funds available for drought assistance, due to severe water shortages in the north of the state.
The Northern Gulf Resource Management group will provide interest-free loans up to $30,000 to graziers in the region who are quickly running out of water.
Chief executive officer Grant Fawcett says the group has access to $450,000 and will be eligible for the government's emergency water infrastructure rebate which covers half the cost.
He says other resource management groups across the state are looking into the idea.
"Some of the other CEOs like the concept and they'll be talking it through, but you need to have access to those unallocated funds up front and not a lot of our resource management groups do have access to that money."
© ABC 2013
12:48 EDT Weather models are now showing an El Nino is unlikely to develop this year.