A PROPOSED dam which supporters say would create agricultural opportunities on the Atherton Tablelands is all but dead in the water after a state government business case deemed it was not viable.
The Nullinga Dam, inland on the Walsh River about 55km south west of Cairns, was first proposed in the 1950s but the Tinaroo Dam was built in its place as the more favourable option.
A detailed business case undertaken on the project was released last Friday, with the report showing it was not economically viable.
However, the state government said they would protect the proposed Nullinga Dam site as a precautionary measure for the future while pursuing alternative water supply options for the Far North.
Natural Resources Minister Dr Anthony Lynham said the business case had found that water would cost five to six times more than any prospective water users could pay.
"The state government will pursue other water supply options to support development and jobs and lock down the dam site as a precautionary measure for the future," Dr Lynham said.
"The Morrison government have said they can fully fund this project and now there's nothing stopping them."
The state opposition has been supportive of the project and have committed to getting the Nullinga Dam project shovel ready under an elected LNP government.
LNP Deputy Leader Tim Mander last week slammed the report and said Annastacia Palaszczuk would rather see North Queensland dry-up than build crucial water infrastructure.
"Labor will make-up any excuse not to build dams in Queensland," Mr Mander said.
"Only the LNP is committed to Nullinga Dam because it will kick-start the regional economy, create new jobs and provide water security for generations to come.
"We are listening to locals, and farmers are telling us they need water security to grow their businesses."
MSF Sugar was among the groups widely supportive of the new infrastructure, saying additional water was required to allow their state-of-the-art Tableland Mill to further expand both their milling and farming operations. It would have also assisted with plans to build an ethanol distillery on the site.
Dr Lynham said the state government continued to support expansion of irrigated agriculture.
"SunWater is progressing the $28 million project to modernise the existing open channel irrigation scheme on the Tablelands, including with channel lining, new meters and better electronics.
"It's forecast to save more than 8000 megalitres of water alone. That's more water that farmers can actually afford for more crops."