Queensland company, SunWater, has been announced as the preferred irrigation water service provider for the initial stage of the Ord River Expansion Project.
SunWater's role includes the operation and maintenance of irrigation and supporting infrastructure to service more than 8,000 hectares of new farmland on the Weaber Plains in the East Kimberley.
Water Minister Graham Jacobs said SunWater was one of Australia's leading water providers for major irrigation schemes and managed 40 per cent of the water used commercially in Queensland.
Mr Jacobs said there was a lot of interest in the project, with 27 responses.
"We will now enter into negotiations with SunWater to finalise the scheme design, water pricing arrangements, maintenance contracts and environmental management responsibilities," he said.
This is expected to take about six months.
Regional Development Minister Brendon Grylls said the Ord-East Kimberley Expansion Project was becoming a major hub for agriculture and social development and would be a world-class development.
"This project is a great demonstration of what can be achieved through determination to see through a vision and great social and economic benefits should flow to the East Kimberley," Mr Grylls said.
"The involvement of Aboriginal people as joint venture partners will provide employment and training for indigenous people," he said.