The Rudd Government is seeking proposals from local councils in the Murray-Darling Basin to help them better deal with the huge challenges posed by a future with less water.

"In the face of drought and climate change and after years of over-allocation, Murray-Darling Basin communities are doing it really tough," Minister for Climate Change and Water, Senator Penny Wong, said.

"The Rudd Government is committed to helping these communities forge strong and sustainable futures.

"Today, we are calling for proposals from Basin communities for Government funds to help them assess the impact of less water on their local area, and undertake community-wide planning for the future.

"This initiative is part of the $200 million Strengthening Basin Communities program to assist local governments in the Murray-Darling Basin plan for reduced water availability and deliver associated local water saving initiatives."

Senator Wong said local governments would be able to use guidelines being released today to lodge the applications for the planning funding.

"With this funding, local councils, or groups of local councils, will be better able to update existing plans or develop new plans that better prepare their communities for the impacts of climate change.

"The plans developed through this funding round may form the basis for further applications for funding for local community water-saving initiatives under a later stage of the program.

"I encourage all local governments in the Murray-Darling Basin to apply before the closing date of 21 August 2009."

This announcement confirms the commitment negotiated between the Rudd Government and Senator Xenophon as part of the passage of the Nation Building and Jobs Plan through the Senate earlier this year.

Funding will be reimbursed based on actual costs incurred up to a maximum of $200,000 per local government area. A consortium or regional organisation can pool funds for each local government area involved, up to a cap of $800,000 for four or more councils. Projects must be completed within 24 months of approval.

The Strengthening Basin Communities program is part of the Australian Government's $12.9 billion Water for the Future plan. Guidelines and application forms are available from www.environment.gov.au/water/programs/index.html or by calling 1800 218 478.