Upgrades have been carried out on the pipeline network connecting the Kyneton Water Reclamation Plant to landowners and business, providing improved re-use options for the region's wastewater.

Known as the Kyneton Recycled Water Irrigation, the 14-kilometre pipeline network will deliver up to 300 megalitres of recycled water to those who need it most.

The $7.5 million pipeline was jointly funded by the Australian Government through the National Water Grid Fund ($3.75 million) and Coliban Water ($3.75 million).

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Federal Minister for the Environment and Water Tanya Plibersek said the pipeline network would provide a boost to agricultural productivity in the region, initially helping to irrigate 60 hectares of previously dry farmland.

"Australians know how precious our water resources are," she said.

"The more we can recycle and re-use our water, the better for our environment and for industry and agriculture.

"Kyneton Recycled Water Irrigation is a great example of how wastewater can be recycled for another use.

"As well as re-using our water resources, this project is boosting the region's agricultural potential by irrigating clover to be used as livestock feed.

Crofton Park is the first property to benefit from the Class C recycled water, which is approved by the Victorian Environment Protection Authority for use in agricultural irrigation.

They will use the recycled water to grow clover, which is feed for livestock.

The 60-hectare farm was selected after a land capability assessment and a commitment from the owner to partner with Coliban Water over the long term.

The pipeline will service the growing Kyneton community until 2040, helping to future-proof water supply in the region.

Federal Member for Bendigo Lisa Chesters said she was proud to be part of a government that puts the needs of regional communities at the forefront.

"Kyneton needs a secure water supply to support our agricultural industry," Ms Chesters said.

"Thinking outside the box to use recycled wastewater is helping achieve this by getting water out to our farms, landowners and businesses.

"Instead of this wastewater going to waste, it's great to see this now complete pipeline network channelling water to where it's needed most."

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Member for Macedon Mary-Anne Thomas said it was crucial towns such as Kyneton had water infrastructure to meet its growing needs now and into the future, while protecting the local environment.

"I congratulate the project partners for completing such a crucial community and environment-focused project, and I look forward to seeing the benefits it brings to this region into the future," she said.

"The completion of the final stage of works is an important milestone signalling change for the Kyneton community and the Campaspe River."

Victorian Minister for Water Harriet Shing said the project would deliver water security for the Kyneton community and farmers, giving confidence to agricultural communities, for jobs, and for liveability.

"Recycled water is diversifying our water sources and helping to secure sustainable water supplies for our growing regions without putting pressure on drinking water supply," Ms Shing said.

"We're investing in recycled water infrastructure across the state, to ensure our towns and cities are prepared for the changing climate and making the most of our precious resources."

Kyneton Recycled Water Irrigation is the first project to be completed under the $46.3 million Victoria Connections Package, jointly funded by the Australian and Victorian Governments and other partners.

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