THE Western Irrigation Network has taken a crucial step towards delivering a new reliable water supply to local farmers, with water now flowing into the recently completed recycled water storage dam in Melton.

The new storage dam at the 1.1 gigalitre Melton Recycled Water Plant will be used to irrigate thousands of hectares of farmland from early 2023.

"Unreliable rainfall has been a significant issue for local farmers and this new recycled water supply will help them to grow the district's economy," member for Melton Steve McGhie said.

The $116.3 million Western Irrigation Network project is jointly funded by the Victorian ($65.6 million) and Australian ($48.1 million) governments and other partners ($2.6 million), delivered in partnership with Greater Western Water and local farmers.

Combined with existing storages, the dam will be part of a network capable of supplying 18.3 gigalitres of recycled water a year by 2050.

With access to a new water supply, the local farming community will be able to expand agricultural production, generating local jobs and growth in Victoria's agriculture sector.

The Western Irrigation Network is delivering more than 50 kilometres of pipeline to bring recycled water to the region, transforming it from dryland farming to a thriving agricultural precinct.

Other works under way include the construction of infrastructure to connect existing recycled water supplies between the Melton and Bacchus Marsh plants to feed into the network.