State Minister for Primary Industries and Water, David Llewellyn, said the budget allocation highlighted the Government's commitment to ensuring that not only did farmers have increased access to water resources but also provided them with water security.

"Funding of $80m will be provided from the Water Infrastructure Fund to enable major investment in Tasmania's water infrastructure," Mr Llewellyn said.

"This investment by the Government will include the development of a number of significant irrigation projects with the potential to provide the State with an additional 250 gigalitres per annum of irrigation water."

He said the State Government funding combines with Federal Government commitments of $140m.

"Our Government is looking not only at measures to alleviate the impact of the current drought but long-term projects that will address future drought and climate change impacts," Mr Llewellyn said.

"We recognise, however, that implementing these projects is not just about Government tackling these challenges, but also encouraging private and industry involvement.

"As part of supporting the rural industry, we are also identifying measures to encourage private and industry development of water infrastructure in Tasmania."

More than $1m is being provided over four years to streamline the Dam Assessment process, while a new one-stop-shop dam approval process is now fully operational and providing a more rapid and integrated approval process for dam works permits.