One of the region's top tourism operators is closing.
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Bellrowan Valley Horse Riding has become "another casualty" of the drought.
The award-winning horse riding farm nestled in the foothills of the Hastings Valley hinterland offered a range of packages including trail rides, 3 day treks and even 'pub rides'.
The owners - Mark and Julie Ennor - made the announcement on Facebook.
"We have had 17 wonderful years of fun meeting you and sharing adventures in this beautiful part of the world with our amazing mob of horses, thanks for visiting us and we will miss seeing your smiling faces," they said on January 1.
Mr Ennor said times had been tough.
"The drought has broken us," he said.
"Our main asset and business tool is horses and anyone with stock needs feed and water.
"Water is the number one thing because we can get feed in, we can get water too but that is harder because so many people need it."
Mr Ennor said one of the main reasons he and his business partner Julie bought the property nearly 20-years-ago is because of what they thought would be a "permanent water supply".
"It was a double spring fed three megalitre dam which is now completely bone dry," he said.
The bushfires that ravaged parts of the region in November were the final straw.
"Our horses spent three week at the Wauchope Showground so we couldn't operate for at least a month," he said.
"The flow on effect from the fires is the feed, in the sense our hay supplies have been burnt out.
"Our feed instead of costing three grand a month pay bill it is now 15."
Mr Ennor said January is usually the busiest month of the year but even if they had their most successful months they still would be behind.
While they were hoping to eventually sell the business they wanted to go out on their own terms.
"There has definitely been tears," he said.
"It is definitely sadness, yesterday afternoon I took down all the directional signs, watching my horses get ridden out of the valley.
"I've had them since birth, they are my family,we have to find them homes now."
Mr Ennor plans to stay with tourism developing a new venture called Book It, Do it.
He acknowledges times are tough for the sector.
"We had girls yesterday staying close to Forster and I asked them if they were going to go to Port and they said, 'Is Port ok, weren't there fires there?'," he said.
"People just see the headlines but the reality is the whole state has to get back on their feet."
Local businesses are reporting tourist numbers are down this holiday season.
The regional manager of the NSW Business Chamber Kellon Beard said "local businesses were doing it tough".
He encouraged people to "shop local".
"Running a business is a hard job at the best of times and with severe drought and the bushfires, it is worse now than a lot of people have ever seen," Mr Beard said.