The Peterborough and Flinders Ranges Councils are the latest communities to be made eligible for funding as part of the Drought Communities Program.
The announcement was made by Regional Services Minister Bridget McKenzie on Friday, and will result in the selected communities each receiving $1 million.
Federal Member for Grey Rowan Ramsey welcomed the announcement and said the funding aimed to assist drought affected regions during the prolonged absence of rain.
"This funding has been made available for councils to alleviate the damage caused by drought conditions and develop programs to stimulate the local economy and help local businesses," he said.
Mr Ramsey said areas that were already part of the program had made good use of the provided funds.
"A number of councils have had projects granted which will stimulate the local economy, keep jobs in the area and create opportunities for tourism," he said.
"I encourage Peterborough and Flinders Ranges councils to put forward some good quality projects which will help their communities which are feeling the pinch of a severe drought."
Regional Development Australia Far North Chair Mark Sutton was also pleased to see the extra councils added to the program.
"It is expected that the grant will stimulate spending at local businesses and suppliers in support of the local community and the agricultural industry," he said
Mr Sutton said agriculture was an important backbone in the economy of the new areas to receive funding.
"In the Flinders Ranges Council region, agriculture accounts for the largest share of the region's industry value-add at 20 per cent, is the largest contributor to regional exports with 42pc of total regional export value and accounts for 21pc of local employment."
Eligibility for funding from the program is based on rainfall deficiency and percentage of people in an area whose income is derived from agriculture.
