Federal Water Minister Penny Wong says the funding aims to help water providers plan for a future in which water availability will be reduced and to make their facilities efficient and sustainable.

"Australia's climate is changing and we have less available water than ever before. So we must make every effort to use the water we do have more efficiently," Senator Wong said.

"Under this new round of Irrigation Modernisation Planning Assistance, corporations operating irrigation delivery systems can apply for funds to help make their systems viable for the future."

The funding is part of the Rudd Government's long-term, $12.9 billion Water for the Future plan.

"Water for the Future has four key priorities: using water wisely, securing water supplies, tackling climate change and supporting healthy rivers," Sen Wong said.

"With many irrigation systems in Australia more than 80 years old, and with climate change reducing available water, we need to work to modernise these systems.

"This funding will help irrigation providers develop modernisation plans for their regions to upgrade irrigation infrastructure and assess options to adapt to a future with less water."

Sen Wong said water saved by modernising delivery infrastructure would be returned to the environment to improve the health of our rivers and waterways.

* Guidelines and application forms are available from www.environment.gov.au/water