The $235 million package, expanding or establishing more than a dozen services, comes as policing, health and political leaders prepare to chart a new course for drug policy in NSW.
Some $6.4 million across four years has been set aside to provide early intervention for 11 to 17-year-olds with moderate to severe substance use.
The Cicada service, connected to Sydney's children's hospitals, links children and parents with pediatricians, nurses, social workers and other experts.
Rates of underage drinking have been declining in recent decades but about one in every 11 underage teens engages in risky drinking at least once a month, according to the latest data.
Funding will also be directed to programs targeting pregnant women, Aboriginal people, people with mental health conditions and people in the criminal justice system.
They are among the most vulnerable groups that make up an estimated 1.4 million Australians with a substance abuse problem.
The NSW government said the funding would significantly boost the alcohol and other drug workforce including those with Indigenous or lived experience backgrounds.
"The programs we are investing in will ensure that people with complex needs receive wrap-around support and care to help people recover and rebuild their lives in the community," Health Minister Ryan Park said on Sunday.
The new funding is drawn from $500 million set aside by the then-coalition government in 2022 in response to a major independent inquiry into the drug ice.
About two-thirds of the newly announced package will be directed to government and non-government services in regional NSW.
That's in addition to more than $30 million dedicated to support services in Murrumbidgee and northern NSW in early November during the regional swing of the state's landmark drug summit.
The last and largest set of meetings will be held on Wednesday and Thursday in Sydney.
Modelled on a week-long forum in 1999 that was the impetus for Australia's first supervised injecting room, the summit is bringing together experts, senior police, community leaders and MPs from across the political spectrum to build consensus for drug policy changes.
Harm reduction advocates hope it can deliver health-focused reforms after recent inquiries delivered little more than incremental change.
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