More than $500 million will "turbocharge" the construction of new dams and irrigation projects in a giant funding boost from the government.

Deputy Prime Minister Michael McCormack announced the massive injection to the National Water Infrastructure Development Fund.

In announcing the extra funding in central Queensland, McCormack said the money would be used to work with state governments to identify and co-fund new projects.

The top-up takes the fund to more than $1 billion after it already sat at $580 million.

“We aren’t afraid to back dams. We want to build more of them,” McCormack said.

“This announcement will turbocharge the construction of water infrastructure in regional Australia because our agricultural industries expect it and our communities deserve it."

Other features of the announcement include a $2 million feasibility study on water supply in Queensland, $1 million to look at the Southern Forest Irrigation Scheme in Western Australia and support for the Coldstream Recycled Water Pipeline in Victoria.

Water Resources Minister David Littleproud said he was excited by the prospect of new jobs in regional areas.

“We’re proud to be delivering water and wealth to rural communities," he said.