But incumbent independent MLC Ivan Dean has yet to make a decision on whether he will run, and said that if a major party candidate won Windermere it would mean the upper house could "not function as it was intended".

Labor announced Mr Lyons in Ravenswood on Wednesday - the first confirmed candidate after independent Kelly Wilton withdrew in November.

When asked about the three most important issues for the Windmere electorate, Mr Lyons had a simple message.

"The three most important issues are jobs, jobs and more jobs," he said.

"We have great opportunities here with hydrogen - at least 300 jobs in those particular businesses at the moment that are forecast."

Since losing the federal seat of Bass in 2013 after one term, Mr Lyons has continued his work with surf lifesaving while also joining West Tamar Council.

He previously was involved with the Launceston General Hospital, Northern Tasmanian Netball Association and the Northern Tasmanian Football Association.

Windermere is considered marginal, held by Mr Dean with a 5.75 per cent margin. It extends from Norwood to Low Head, across to Weymouth and down to Blessington.

The Liberal Party is yet to announce its candidate.

Mr Dean described Mr Lyons as "recycled", and said it would be a shame if a major party won the seat.

"The Legislative Council has enough party members in it, particularly Labor. They could have six if they win Windermere, along with two or three independents who are strongly-oriented to Labor," he said.

"It would cause the Legislative Council to not function as it was intended.

"If you look at the way it's going now, with both parties strongly putting forward their candidates, at the end of the day it's of no value. It cannot function as it was meant to function. Let's just become a unicameral state."

Last year, Liberal candidate Jo Palmer won Rosevears by 260 votes ahead of independent Janie Finlay.