The Queensland government says a $5.4 billion federal investment in the Hells Gate Dam is welcome, but the project will only be approved if it makes water more affordable to northern irrigators.
It comes as Kennedy MP Bob Katter claims he received assurances from the federal government that the dam would be built to a height higher than what is being proposed.
Prime Minister Scott Morrison says funding for the dam in the state's north will be in next week's 2022/23 budget and subject to completion of the business case, expected in June this year.