TASMANIA'S ambitious, biggest irrigation project, in the Midlands, will begin next year.

The project, announced yesterday by Premier Lara Giddings, is expected to turn Tasmania into a food bowl for the nation.

Ms Giddings said the two water schemes, worth $100 million, would create new opportunities and jobs in agriculture for generations to come.

She said the project was one of the "most exciting investments" in the state's farming history and would be a boost for local communities and the broader Tasmanian economy.

Most of the water available from the schemes has been sold, giving the irrigation projects the green light to proceed.

Ms Giddings said the project could supercharge agricultural growth by providing water to about 350 properties from Perth to Kempton.

It is hoped the Midlands will become a major food production area in the same way the Coal River Valley developed following the construction of the Craigbourne Dam.

The $88 million Midlands Irrigation Scheme should be completed in two years and the $12 million Lower South Esk Irrigation Scheme will take about 12 months.

Primary Industries and Water Minister Bryan Green said: "We are now almost half way through the current list of 13 projects across the state three schemes have been built, another is under construction and the schemes in the Midlands are ready to go.

"It is extremely positive news for Tasmania and marks the start of a new era for agricultural production."

Approval from the Federal Government in April gave the scheme a boost.

Federal Water and Environment Minister Tony Burke said the start of works was an important milestone in driving new farming opportunities for Tasmanian irrigators.

Local landowners had bought the majority of water from both Midlands schemes and also welcomed major investment from interstate.

Former Tassal chairman and agribusiness investment banker David Williams, now based in Melbourne, had purchased the remaining summer water from both schemes.

"This is further recognition that few places around Australia can offer the level of water security for farmers that our irrigation schemes provide," Mr Green said.

Mr Williams said he had some significant and exciting plans for horticultural development in Tasmania.

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