Residents of Murray Bridge will become less reliant on the river for which their town is named.

The South Australian town will be the site of a new Federal Government initative to save 170 million litres of drinking water per year.

$7 million will be spent on a project to harvest stormwater from the regional city for treatment via a constructed wetland.

The treated stormwater will then be used to irrigate parks and sporting fields, improving the aesthetic and recreational facilities within the township while freeing up drinking supplies.

“A growing challenge for all of us into the future is improving water security by diversifying water supplies available in urban areas,” Parliamentary Secretary to the Minister for the Environment Senator Simon Birmingham wrote in a press release announcing the funds.

“This project is about more than infrastructure. It will provide the community with improved recreational facilities and the opportunity for school and community groups to learn about water quality, habitats and ecosystems.

“Irrigating our open spaces with stormwater makes the most of the water supplies we've got and will reduce the demand on potable water,” he said.

The Australian Government has promised more than $679.701 million in funding for communities across Australia to deliver innovative stormwater harvesting and reuse solutions, as part of the National Urban Water and Desalination Plan.