Central Queensland University has been named as a partner in a new Smart Water Research Facility, announced this week by Queensland Premier Peter Beattie.

The Premier said Queensland will soon be tapping into innovative water supply solutions with the help of $10 million in Smart State funding.

He announced Griffith University would use the Innovation Building Fund grant to construct the Smart Water Research Facility at its Gold Coast campus.

Griffith University is partnering with the Gold Coast and Toowoomba city councils, Wide Bay Water, University of Queensland, University of the Sunshine Coast, Central Queensland University, NIWA Australia, National Research Centre for Environmental Toxicology, International Water Centre, AquaDiagnostic, and EcoNova for the project, which is estimated to cost a total of $66 million.

CQU's contribution via the Institute for Sustainable Regional Development will consist of direct in-kind support to contribute to the management, administration and project development of the initiative, as well as providing the leadership for a program called Policy and Planning (socio-economics).

ISRD's Executive Director Professor Bob Miles said that CQU's research capability will be drawn on to assist in initiating and contributing to funded project activity.

"Additional leverage of the ISRD's resources would be expected through funded project activity," he said.

"The ISRD sees this initiative as offering significant strategic long-term benefits to the State, Queensland's industry and the community".

Professor Miles said water will be a major research interest into the future driven by climate change, increased competition for water and environmental accountability.

"CQU has strong capacity in this field as well as equal share holding in a consortium known as the International Centre of Excellence in Water Resources Management (ICE WaRM), trading as WaterEd Australia".

The Premier said that, as South East Queensland residents stare down the barrel of a whole new level of water restrictions, there has never been a more crucial time to search for ways to better manage our supplies.

Deputy Premier Anna Bligh said the Smart Water Research Facility will bring together experts from research institutions, water supply authorities and water technology companies.

"They will develop innovative and integrated solutions to meet the needs of our growing population," Ms Bligh said.

"The high-calibre research team will focus on sustainable water supplies, safe drinking water and better water management and policy solutions as well as increasing community confidence in the use of alternative water sources".

Ms Bligh said funding will be used to construct a new building and acquire specialised equipment.

The state-of-the-art facility will include labs, distillation rooms, a social science resource centre and outdoor facilities such as wastewater and recycled water pipes and constructed wetlands. It will also house the Gold Coast City Council's scientific services laboratory.

"Our Innovation Building Fund is all about giving local researchers the tools they need to create a better world for all Queenslanders, be it medical breakthroughs, crop diversification or water supply solutions," Ms Bligh said.

"That's why this Government is spending $128 million over the next 4 years building the infrastructure institutions need to progress their vital research".