The Federal Government has announced additional funding for water projects and industry support in the Riverland area of South Australia.


Federal Minister for water, Tony Burke, announced the additional support, saying it reflects the economic and environmental challenges facing the irrigation industry and communities in the immediate area.


"Up to $180 million has been set aside in the existing SRWUIP program, subject to a due diligence assessment, for South Australia to run the Water Industry Alliance's River Murray Improvements Program to improve the efficiency and productivity of water use and management along the river," Mr Burke said.


"In return for the funding, up to 40GL (36GL long term average annual yield) of water will be provided to the environment. This will help 'bridge the gap' to the sustainable diversion limits under the Basin Plan.


"The Gillard Government will also provide $85 million under a new National Partnership Agreement with South Australia for research, regional development and industry redevelopment."


Funding for these proposals will be met from within existing resources and from funds set aside in the recent Mid-Year Economic and Fiscal Outlook.