The Tasmanian Irrigation Development Board is wants to provide irrigation water to 78,000 hectares of farmland from just south of Cressy to south of Oatlands.

The Midlands Water Scheme is the first of 11 projects being developed by the Board.

The proposal, which has been revealed for public consultation, would use 50,000 megalitres of water per year with a high degree of security.

"We believe this option is a scalable and flexible proposal," Board chief executive Jock Chudacek said.

"It comprises three separate schemes, each using a different water source."

Mr Chudacek said one of the three schemes would not involve the use of public money for construction.

The others would require a mix of public and private capital totalling $74 million.

"Two mini-hydro plants will be incorporated into the construction of the southernmost scheme," he said.

"The current reliable licensed irrigation water used in the Midlands is 30,240ML.

"This scheme has the potential to more than double the total reliable water available to the Midlands region."

Premier, David Bartlett, says the Government is committed to building water infrastructure which is "fundamental to developing innovative, high value, niche market agri-business".

"This isn't just about growing crops on farms – water offers hope for our drought affected Midlands' communities – hope for the future of their schools, of their small businesses and their football teams.

"If the community gets behind an irrigation project, the Midlands will pioneer change to Tasmania's rural fabric."

Mr Bartlett said that the preferred option for the Midlands Water Scheme produced by the Irrigation Board would be the basis for wider community consultation.

"The reaction from the local community will be crucial to the final form of the scheme that will be taken through the approvals process," he said.

"Among other matters, the willingness of farmers to buy water entitlements to offset the capital costs will determine what is able to be done.

"The South Esk and Arthurs Lake options will need to be genuine partnerships between public and private interests if they are to be realised."

The Irrigation Board is developing 11 regionally significant irrigation projects so that Tasmania can realise its water advantage.