A decade of lobbying has finally paid off for farmers in the Mitiamo area, with the announcement the Federal Government will fund its share of a pipeline to the region.
Mitiamo Pipeline Committee chairman Neil Allen said it was hoped to start work on the pipeline, early next financial year.
"It means we will have clean, fresh water, 24 hours a day; we'll no longer have to rely on channel filled dams," Mr Allen said.
"It's not an election promise, it's guaranteed."
Deputy Prime Minister Michael McCormack confirmed the $14.5 million of federal funding, to match state funding towards the $27m project, announced in last year's Victorian budget.
"The federal funds ensure this plan goes from vision to reality, and the result will be real, positive change for the people and farm businesses in Mitiamo, Tennyson and Dingee," Victorian opposition agriculture spokesman Peter Walsh said.
"This is a great day for a community that has been thorough and determined in pursuit of this project.
"The Mitiamo Pipeline Committee deserve a huge round of applause because their hard work is going to improve the lives of the people in this area for generations to come."
The project will build a reticulated water supply for the 75,000-hectare area.
It will modernise a number of dam fill systems and provide a 375-kilometre stock and domestic service to 180 property owners and 87 homes in the townships.
Water will come from the Waranga Western channel, which is part of the Goulburn Murray irrigation district.
Mr Allen said he hoped it would take about 18 months to complete the pipeline.
"It's been 10 years in the process, and we've had a few elections, in that time, when they could have come good," he said.
The project would double the area, which was able to receive a water supply.
"Water will be cleaner for stock, cleaner for the boom sprays and, as it's a sparsely populated area, it's an ideal spot for pigs and poultry," he said.
"There is also an opportunity for feedlots to finish lambs off, and they won't have to worry about water."
Former Victorian Farmers Federation president and Pyramid Hill primary producer Peter Tuohey said governments were notorious for taking a long time to do things.
"It opens the door to a lot of smaller, intensive animal industries, even free-range producers, as you have a good, reliable water supply and you're not relying on rain, or channel-filled dams," Mr Tuohey said.
Mr Allen said the pipeline would massively cut evaporation and seepage from the nine open channels, which currently serviced the area.
Victorian Water Minister Lisa Neville said the project would also help Victoria meets its water recovery commitments under the Murray-Darling Basin Plan.