A business case has been launched into a Adelaide River Off-Stream Water Storage facility to form the next steps in Australia's water infrastructure.

The Federal Government is funding the $2 million business case through the feasibility component of the $1.5 billion National Water Infrastructure Development Fund.

The government has already given the CSIRO $3.5 million to explore using irrigation water from the Roper River to open up one million hectares to cropping.

The CSIRO study would "assess the transformational value of the NT's largest water catchment area to become a Super Food Bowl".

There have long been dreams of creating cropping industries like rice and cotton in the NT.

Many of these crops are being trialed at the Katherine Research Station.

The detailed business case for the Adelaide River Off-Stream Water Storage facility is due for completion by late December 2021.

Just last week a $1.4 million research program was announced to trial high-value crops such as cotton and peanuts, with potential crop rotations with sorghum, maize, rice, pulses or pasture

The government says the program "could help open up areas of the Territory as a significant grower of broadacre crops".

The government has already given the CSIRO $3.5 million "to undertake a comprehensive assessment of the development potential of the water and soil resources of the Roper River catchment".

The business case would build on the outcomes of CSIRO's $15 million Northern Australia Water Resource Assessments, which explored opportunities for water and agricultural development.

CSIRO's investigation found developing the Territory's water resources at sites such as the Adelaide River would support increased agricultural production, significantly bolstering the local economy and jobs.

This detailed study will assess the market demand and infrastructure needs for the project to best support economic development in the Darwin region

"We understand just how important water is for farmers and in fact the whole community, who continue to feel the impacts of the water pressures facing the Territory," Senator Sam McMahon said.

"That's why we're thoroughly investigating projects which will help us capture and store water when it does rain to increase local water supply and help drought-proof the Territory."

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