Federal Minister for Water Penny Wong and her Queensland counterpart, Stephen Robertson, announced the initiatives today as part of the Water for the Future program.

Funding to the tune of $36 million will be allocated to help farmers invest in more efficient irrigation systems, as well as provide water saving education to communities, and is designed to deliver 12 billion litres of water to the environment.

The project will be co-ordinated by the Queensland Department of Environment and Resource Management, which will shortly be inviting proposals for on-farm projects.

Also announced today, a water feasibility study will be conducted to assist the growing coal seam gas industry as it rapidly expands across the state.

“This study will assist the coal seam gas industry to better manage the risks to ground and surface water associated with its mining activities, and ensure that the industry can grow productively while also looking after the environment,” Senator Wong said.

Mr Robertson said the study, led by the Queensland Department of Environment and Resource Management, would "enable better decision-making and facilitate the future expansion of the industry in Queensland, leading to sustainable economic and social benefits for local communities".

Meanwhile, the Lower Balonne water purchase tender deadline has been extended by two weeks to 5pm on April 30.

Senator Wong cited confusion around the new multi-year accounting rule as the reason for the extension.