As part of the state government budget 2018-19, $10 million will fund Victoria’s share of the $29 million Mitiamo and District Reticulated Water Supply Project.  

The state government has applied for the remaining funds from the federal National Infrastructure Development Fund.

Read more: State budget 2018-19: What’s in it for Bendigo, central Victoria

The project will build a reticulated water supply for the 75,000 hectare area surrounding Mitiamo – modernising a number of dam fill systems and providing a 375 kilometre domestic and stock service to 180 property owners and 87 homes in the Mitiamo, Tennyson and Dingee townships.

Water will come from the Waranga Western channel, which is part of the Goulburn Murray irrigation district.

Victorian Farmers Federation water council chairman Richard Anderson, in welcoming the funds, said currently farmers operate from dam fill schemes, meaning producers have to cart water, or destock during dry periods.

“It’s not a very efficient system,” he said.

“The pipeline opens it up to some degree for some of the intensive industries,” he added, referencing piggeries or chicken meat production.

Cereal croppers, sheep graziers and mixed farming businesses are expected to benefit from the new system, as would regional cities like Bendigo, Mr Anderson said.

Water minister Lisa Neville said the pipeline would provide greater water security for townships across the region.

“Ensuring these communities have reliable access to water, particularly during ongoing dry conditions, is crucial to our agricultural sector,” she said.

Bendigo East MP Jacinta Allan said the money would help boost the local economy and urged the federal government to financially support the pipeline.

In 2016, the state government announced $1.2 million for a business case to explore upgrading and expanding the existing network of pipelines to deliver water to more properties in the district.