The Rudd Government contributed up to $6.61 million and South Australia contributed $734,000 to the project.
'The Rudd Government has committed $330 million to support the South Australian Government in addressing the many challenges facing the Coorong, Lower Lakes and Murray Mouth,' Senator Wong said.
'Up to $120 million of this funding is going towards the cost of irrigation and drinking water pipelines for communities dependent on the Lower Lakes, through the Lower Lakes Integrated Pipeline Network.
'The project being announced today will service Point Sturt and Hindmarsh island, which have been seriously impacted by water shortages and have had to rely on measures such as water carting over recent times. '
Minister Maywald said the project would provide the communities with access to reliable water supplies for domestic needs and for stock.
'The project will provide security for rural landholders and assist the regional economy,' Minister Maywald said.
'It entails construction of two potable water pipeline extensions that are expected to be completed in early 2010.'
The first pipeline is an 11 kilometre extension branching from the Milang-Clayton pipeline to Point Sturt on Lake Alexandrina. The second pipeline is a 12.6 kilometre extension from an existing main servicing the Hindmarsh Island marina precinct in the south-west to the eastern side of the Island.