A $3.18-million commitment from the Regional Development Fund will help make water available for agricultural use from the Bundaleer Reservoir.
The Bundaleer Pipeline Scheme will provide an affordable source of water to industry near the reservoir through a 12-kilometre pipeline network and other related infrastructure.
Once fully-developed, the scheme will provide up to 25 full time direct jobs, and generate estimated annual revenue of about $4.6m in the region.
The state government has also applied to the National Water Infrastructure Development Fund for matched funding, which is expected to be announced in mid-2017.
Today’s funding announcement was made at a public forum in Port Pirie as part of Country Cabinet Port Pirie, Yorke and Mid North.
SA Water Minister Ian Hunter said the state government had investigated opportunities for the use of several offline reservoirs where environmentally appropriate and when supported by the local community.
“The use of water from the Bundaleer Reservoir for agricultural purposes will still allow the community to access the reservoir for recreational fishing, which is expected to be available in the next few months,” he said.
Regional Development Minister Geoff Brock said the scheme would help drive economic growth in the Mid North by accelerating and expanding high quality food production, creating jobs and encouraging on-farm investment.
“The availability of this new water for local agricultural production can drive the expansion, diversification and viability of intensive feedlots and broadacre production in the Mid North,” he said.
Construction of the Bundaleer Pipeline Scheme will begin by the end of the year pending federal government funding.