The announcement was part of a list of 51 projects that received funding under the National Stronger Regions Fund. 

Mount Isa Mayor Tony McGrady said the plant would improve the quality of treated effluent water, which would be important in future water shortages.

In recent water restrictions, the plant’s water was wasted because it did not fit the licensing conditions. 

The upgrade should be completed by June 2016. 

 “Mount Isa remains an important regional centre for both Queensland and the nation for the resource sector, agriculture, transport and tourism,” Cr McGrady said. 

“Gaining this funding means we will not only be able to irrigate our public amenities with Class A effluent water but will also directly increase employment within the council to cater for the increased levels of service.

“In order for Mount Isa to remain attractive and retain people, green, safe public amenities are an essential requirement.” 

Cr McGrady said the total cost of the project would be $5 million, which means the council expects to loan half the cost from the Queensland Treasury to be paid off within 20 years at “favourable interest rates”. 

“This is the time to borrow and build for the future,” he said. 

Council chair of sports and beautification Councillor Kim Coghlan believed the upgrade would benefit all Mount Isa residents and allow more effluent water to be used on Sports Parade. 

“We have a duty of care to players to make sure they are playing on good quality fields,’’ Cr Coghlan said.

“Just because we’re out here doesn’t mean we should have substandard conditions.” 

Other local regions to receive funding included Burke Shire Council, which will have $160,000 for construction of a pontoon wharf, and Charters Towers Regional Council, which will receive $8.69 million for upgraded water infrastructure. 

Regional Development Australia North West Queensland committee chair Paul Woodhouse was pleased with Mr Truss’s announcement. 

Mr Woodhouse said applications for further funding will be available from Friday.