The Federal Government has announced a further $1.7 billion in funding to deliver an additional 450 gigalitres of environmental flow for the Murray-Darling Basin.


Prime Minister Julia Gillard was joined by Water Minister Tony Burke in announcing the plan, which is says is vital in returning the system back to health.


The announcement brings the total environmental flow for the system to 3200GL, the final figure recent scientific and environmental modelling suggested as optimal flows for returning the system back to health.


The Government will provide $1.77 billion overt he next ten years, starting from 2014, to relax key operating constraints and significantly improve existing infrastructure.


Of the extra funding, $200 million will be used to remove constraints such as low lying bridges and undersized dam outlets that currently limit both the volume of water that can flow through river systems and the environmental uses to which it can be put.


Legislation to establish the special account and advance appropriation is expected to be introduced into Parliament before the end of the year.