THE federal and state governments have announced the extra $15 million for proposed expansion of Kangaroo Island's water delivery system and desalination plant.
This comes on top of the previous $33m commitment from the state government announced by the premier on June 5, when this latest contribution was flagged.
The new desalination facility would be built adjacent to the existing plant at Penneshaw and would be part of a $47.8m plan to connect the plant to the rest of the Island.
New pipelines would also enable customer connections in American River, Baudin Beach, Island Beach, Sapphiretown and other points along the way, including stand pipes along Hog Bay Road.
Federal Agriculture and Drought Minister David Littleproud was to have visited Parndana on July 15 to make the announcement but this was cancelled at the last moment.
He is still expected to visit KI in coming weeks.
Deputy Premier and KI native Vickie Chapman said the project would create an estimated 500 jobs and add over $200m of economic value to KI in the next 15 years.
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Mayor Michael Pengilly said the additional water production and pipeline project was a very important development for the Island.
"It will ensure water security for KI and enable businesses, farms and houses along the new pipeline to access water, including the golf course," he said.
Some residents at American River had expressed opposition to the annual charges associated with being made to connect to the water system and are happy with rainwater.
Mr Pengilly said state law precluded anyone in the township from opting out of connecting to the water pipeline if it extended past their property.
Mr Littleproud said the desalination plant would improve water security, and would help support vital industries and provide long-term social and economic recovery.
"The desalination plant is the first of many priority projects that will receive local economic recovery funding available for bushfire affected communities. This ensures a locally-led approach to bushfire recovery," he said.
"Early in the recovery journey, we knew that the best way to support local recovery would be to align our funding to local and regional recovery planning and priorities.
"By partnering with states we are maximising the amount of funding available to the most severely affected communities."
The federal government's contribution is part of the local economic recovery funding announced by the prime minister on May 11.
SA Water Minister David Speirs said Islanders had been wanting this type of water infrastructure for a long time.
"Engagement with the local community over the past three years has made it clear greater capacity generated by this plant is needed to improve drinking water security and provide better water infrastructure to support the local tourism and agriculture industries," he said.
The desalination plant will take between 18 and 24 months to complete with operations estimated to commence in 2022.