Sediment has plagued the river mouth and become a headache for Orford residents and businesses in the past decade.

Last December, the Glamorgan Spring Bay Council approved the allocation of $250,000 towards a project that would stabilise the river mouth over the next two years. Marine and Safety Tasmania also said they would match the investment.

The state government has now joined the party with a commitment of $500,000.

The Prosser River stabilisation project will involve the installation of a "training wall" made from geo-textile bags to retain stability of the river mouth, protect the northern shoreline and Raspins Beach, and improve navigation safety, requiring much less frequent dredging.

Glamorgan Spring Bay Mayor Michael Kent said the recent budget announcements from the state government included the very welcome news that a longer-term solution for the river mouth would be found.

"This is a very welcome budget decision from the Liberal government on what is an important local marine project," Cr Kent said.

"Not only is this important from the perspective of encouraging growth in the Orford/Triabunna area and supporting local businesses but it is necessary to deliver a longer term solution to what is a serious erosion problem threatening the Tasman Highway, Raspins Beach, private residences and a shore bird nesting area at Orford."

Cr Kent praised the political progress of the issue, which saw swift cooperation between state and local government.

"It is co-operation like this between different levels of government that is the future of regional progress and development in Tasmania. It enables more investment in longer term solutions rather than solutions that in the past have unfortunately been short term based on very limited available funding.

"This commitment by the state government and Minister Rene Hidding, Minister for Infrastructure, will ensure long term cost savings for what has been an ongoing issue."