However, it does not mean Launcestonians and visitors can expect clear crystal waters in the Tamar. Infrastructure Minister Michael Ferguson said he himself had to be educated over what a healthy estuary should look like.

"I think that there's been an education process, including for myself ... people need to ... realise that what appears unattractive is in fact very natural, what's important is that the microbial health and the flora and fauna of the estuary are able to recover and rehabilitate," he said on Wednesday.

"We're really pleased that we've seen a genuine improvement in the health of the Tamar river and estuary. This was surprising to a lot of people but it's no surprise to us, because ... the first works that the governments agreed needed to be the priority was the catchment works," he said.

"We've actually fenced off 175 kilometres of riparian areas and keeping stock away from waterways, preventing the unnecessary discharge of silt and faeces into the catchment, which end up in the estuary."

IN OTHER NEWS:

The update came as part of the 2017-2027 Launceston City Deal's third annual progress report that was handed down by the federal, state and local government.

The $509 million is made up of funding from the three levels of government and private investment.

The report also revealed the $90 million creative precinct, proposed for the former Birchalls site, was added to the deal.

The report also provided an update on the divestment of Paterson Barracks, stating in the 2020-21 financial year a suitable location for the new cadet facility would be found.

However if the new facilities are built at Youngtown in 2022 or 2023, as a defence spokesperson said in August, it will be about six years after the announcement new facilities would be built.

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