Coliban Water will receive $1.3 million for an alternative water source at Serpentine, Central Highlands Water will receive $938,000 for a project in Maryborough, and Macedon Ranges Shire will receive $1.2 million for a development at Kyneton.

Member for Bendigo Steve Gibbons said Central Highlands Water planned to spend the funds on a potable and raw water leak reduction, main water renewal and pressure reduction program.

He said Macedon Ranges Shire would connect gardens and the Kyneton Showgrounds to the Coliban Water recycled water network.

“The Rudd Government’s $200 million Strengthening Basin Communities program is helping local councils right across the (Murray Darling) Basin plan for a future with less water, and to invest in local water-saving initiatives,” he said.

“In October 2009, local councils across the Basin were invited to submit proposals for projects that would improve urban water security by reducing the demand on potable supplies under the Strengthening Basin Communities program.”

Mr Gibbons said councils could apply for the second round of the Water Saving Initiatives component of Strengthening Basin Communities. He said applications would open some time between now and 2011.

Minister for Climate Change, Energy Efficiency and Water, Senator Penny Wong, said the announcement would help communities secure their water future.

“Across the Basin, many communities are confronting the challenge of securing their water supplies in the face of continuing drought and climate change,” Ms Wong said.