Despite continued denials by the government, NSW Planning Minister Tony Kelly has admitted in State Parliament that Tillegra Dam would supply water to the Central Coast.

Mr Kelly made the admission in response to questions in parliament from Liberal MP Robyn Parker on Wednesday and again from Greens MP John Kaye on Thursday.

‘‘The Hunter Water Corporation has proposed construction of the Tillegra Dam to provide security of groundwater supply to the Lower Hunter and Central Coast,’’ Mr Kelly said on Wednesday.

‘‘The Tillegra Dam has been declared to be a critical infrastructure project in recognition of its role in the future growth of the Lower Hunter and Central Coast.’’

Dr Kaye said the comments either showed the Planning Minister’s ignorance or the Keneally government’s deception in spruiking the Hunter-funded dam.

‘‘Hunter residents should not have to pay for water supply infrastructure for the Central Coast,’’ Dr Kaye said.

‘‘If the Keneally government wants to make this a project for Wyong and Gosford shires, then they should start again with a new pricing arrangement and a new environmental report.’’

A spokesman for Mr Kelly said the Environmental Assessment and Submissions Report referenced the benefit of the dam to the Central Coast and its continued growth.

‘‘While the dam is principally being proposed to secure supply to the lower Hunter and the proponent’s project justification is principally on this basis, the proponent has stated that the dam could be a source of supply to the Central Coast if needed,’’ he said.

The NSW Government had retreated from claims the Central Coast would use the $477million dam since the area received federal funding for a pipeline between Mardi and Mangrove Creek dams to supply Wyong and Gosford.

In December 2008, Water Minister Phil Costa told Central Coast mayors they would not pay for the dam.