Flinders Shire Council has secured $25.6 million in funding for the Hughenden Water Bank project to establish a 7000 megalitre, off-stream water storage and distribution system.
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The funding was announced by the state government in its 2022-23 budget last week.
Flinders Shire Council mayor Jane McNamara said the project was the first stage in supporting the development and expansion of irrigated agriculture and industry infrastructure in the region.
"Water is one of our most precious resources, known as liquid gold and the key to unlocking growth and development in north west Queensland," Cr McNamara said.
"Council's goal is to double our shire's population by 2030 to 3000 residents, and our critical requirement in achieving this goal is water security.
"This funding helps to materialise the council's vision of 1000 jobs in 1000 days."
Cr McNamara said the local council was in the process of securing additional water licences.
"The council water strategy is simple - we have secured 8200 megalitres of river licences so far, and we are in the process of securing additional licences," she said.
"The one factor prohibiting the efficient use of this water is that we currently have no way of holding or capturing the water we own.
"The project's beauty is that it is simple, practical and deliverable, and will deliver economic benefits and outcomes in the short term."
Ms McNamara said the project would continue the expansion of the horticultural projects in the Flinders Shire, and enable an additional four to five high-value horticultural farms to be developed in the area.
"Council strongly believes that this shovel-ready project will meet the objectives of all levels of government, and will demonstrate how working together, Hughenden can be a horticulture hub in north west Queensland," she said.
"Water security is critical, and the proposed Hughenden water projects along the Flinders River will support the future growth and development potential of Flinders Shire and its surrounding region."
The state funding provided 50 per cent of the total project costs with the remaining funding required from the federal government.
Cr McNamara gave thanks and credit to the Flinders Shire team for their efforts headed by CEO Hari Boppudi.
"This news would also be dear to the heart of Gavin 'Bones' Dennis, who was strongly involved in the initial planning, however sadly passed away in August 2020," she said.