Under a memorandum of understanding signed in May 2018, the Government will inject $20 million per year for the next 10 years.

In return it gets a 10 percent ownership of TasWater.

The $200 million cash injection will allow Taswater to accelerate its water and sewerage infrastructure investment program.

“In line with operations since its formation, TasWater will continue to carry out the management of Tasmania’s water and sewerage services in a manner that puts our customers first and is focused on providing value for money outcomes,” a TasWater spokesman said.

“TasWater and its owner councils are confident the ongoing contributions from the Government over the next decade will benefit TasWater in improving water and sewerage services to communities across Tasmania.”

TasWater has promised to improve infrastructure around Tasmania investing $140 million in the program in the first year, growing to more than $180 million at the end of four years.

Taswater recently announced that it had selected an alliance partner to oversee the capital works program. UGL and CPB Contractors with support from WSP Australia will partner with TasWater to form the Capital Delivery Office.

TasWater chief executive Mike Brewster said the companies had highly specialised expertise that would enhance TasWater’s capabilities.

“Our capital works program is ambitious and complex and we went through an in-depth assessment process to determine the best way to achieve the outcomes needed,” Mr Brewster said.

In what it described as an historic development, TasWater said in August last year that all public health boil water alerts had been lifted.

Tasmanians are now able to safely drink clean water straight from the tap.