The Tasmanian Farmers and Graziers Association announced on Monday that Tasmanian Irrigation had opened the market for entitlements to 2000 megalitres of water to service farms at Swansea, Cranbrook and Coombend.

The water will be pumped from winter flows in the Swan River to a dam at Cranbrook.

Tasmanian Farmers and Graziers Association president Wayne Johnston said the scheme opened doors for increased diversity in the farming sector.

"Farmers can now go to look at crops they haven't thought of before because they haven't had the water," Mr Johnston said.

"At last we can release the potential of farms that have been restricted by the lack of reliability of water.

"To get contracts to produce crops and to know that you can finish those contracts because you've got that water supply just opens up the doors."

Glamorgan Spring Bay Mayor Michael Kent said the project was "magnificent" and would create endless opportunities for farmers in the area.

"It opens itself up to growing more vegetables on the East Coast," Mr Kent said.

"With water, everything grows, so it just opens the whole thing up.

"It's about employment. The opportunities are there. If there's more vineyards, then there's more employment."

The federal government gave $60 million to the scheme, which formed part of the second of five Tasmanian Irrigation projects.

Water sales, which close on March 31, were launched at Swansea, and entitlements are available to owners or occupiers of land in the district.