It is understood that a board of management is now being formed which will include two members from the Gilbert River catchment and two from the Flinders River catchment.

It is further understood that the CSIRO will be in control of the research.

Cr Annie Clarke, Mayor of Burke Shire and chairwoman of Gulf Savannah Development (GSD), said this announcement marked a significant milestone for the region, and that both the State and Federal governments have now formally recognised the potential to develop irrigated agriculture in the Gulf Savannah.

"We have areas of soil suitable for irrigated agriculture, and recent investments in transport infra- structure have enhanced the viability of these ventures," she said.

"Around 25 percent of Australia's water run-off is into the Gulf of Carpentaria, yet to date only 1pc of Gulf rivers have been allocated."

The Gilbert River Irrigation Area lies within Etheridge, Shire and currently around 800 hectares is successfully cropped along the Gilbert River, although soil studies show more than 21,000ha of land suitable for irrigation.

Etheridge Shire Mayor, Cr Warren Devlin, said the people of the Gulf Savannah are committed to environmental best practice and to delivering economic development and employment opportunities for the region, particularly for the traditional owners groups along the Gilbert.

"We already have strong private sector interest in investing in the Gilbert River Irrigation Area, and this announcement will reassure investors that there is government support for further expansion of the irrigation area," Cr Devlin said.

"Councils across the Gulf Savannah and North West Queensland regions have united behind their regional development agencies, Gulf Savannah Development and the Mount Isa to Townsville Economic Zone (MITEZ).

"We have taken that one step further in that Gulf Savannah Development and MITEZ have begun to initiate joint activities, including the Northern Outback Beef and Roads Forum, and also in promotion of irrigated agriculture in Queensland's northern savannah country.

"This announcement demonstrates the power of cross-regional partnerships. We are committed to maintaining a strong working relationship between the Gulf Savannah and North West Queensland regions as we implement the $10m package announced today."

No timeframe for the commencement of the project has yet been established.