It is a key role for the continued development of the NT.

Only late last year, the former Minister, Matt Canavan, was in Katherine pumping up the need for more water resources and more crops to develop the Territory into a national food bowl.

"There is no doubt, all we need is water. If you add water to the great soils that exist around the Katherine area, you will create more jobs, more food, and build a bigger and stronger economy," Mr Canavan said.

Mr Canavan lost the portfolio after supporting former Nationals' leader Barnaby Joyce in his failed challenge to Michael McCormack earlier in the week.

Mr Pitt has also taken the resources portfolio.

The Australian Resources and Energy Group today congratulated Mr Pitt for his elevation to Cabinet as Minister for Resources and Northern Australia."

AMMA chief executive Steve Knott said."We look forward to working with the new Minister on policies to support and grow an industry which provides hundreds of thousands of high-paying skilled jobs, supports regional economies and delivers the national revenues that builds vital infrastructure and funds social programs.

"For many years the Australian resources industry has been exceptionally served by committed and highly knowledgeable federal ministers from both ALP and Coalition governments, including Martin Ferguson, Gary Gray, Ian Macfarlane and most recently Matthew Canavan.

"Mr Pitt has big shoes to fill, but as a passionate regional Queenslander with prior experience in the trade and investment portfolio, we are sure he is up to the challenge."

Nationals MPs Darren Chester and Keith Pitt have been elevated to federal cabinet, emerging as big winners from a week of leadership turmoil and scandal.

Prime Minister Scott Morrison announced the new line-up today alongside Deputy Prime Minister Michael McCormack, who survived Barnaby Joyce's leadership challenge on Tuesday.

Mr Chester has returned to cabinet, with the Victorian's portfolios of veterans' affairs and defence personnel given higher status.

Mr Pitt has jumped from the back bench to cabinet as the new resources, water and northern Australia minister.

New deputy Nationals leader David Littleproud has regained the agriculture portfolio, replacing Bridget McKenzie who quit over the sports rorts scandal.

Another McCormack ally, Queensland MP Michelle Landry will continue as assistant minister for children and family services, while also assisting Mr Pitt as minister for northern Australia.

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