The Rudd Government is calling for proposals for stormwater harvesting and re-use projects under a special new $200 million initiative.

Minister for Climate Change and Water, Senator Penny Wong, today announced the opening of the applications while visiting the Solandra Wetland in Adelaide with South Australian Minister for Water Security, Karlene Maywald, Senator Nick Xenophon, Member for Makin, Tony Zappia and Member for Wakefield, Nick Champion.

The new initiative, which has been created from within the $12.9 billion Water for the Future package, was negotiated between the Rudd Government and Senator Xenophon as part of the passage of the Nation Building and Jobs Plan through the Senate last month.

"This new investment in stormwater represents more progress towards securing Australia's long term water supplies," Senator Wong said.

"Climate change means we need to find new, innovative water supplies for our cities and towns.

"Stormwater harvesting and re-use can improve our water security by easing the demand on drinking water supplies, for use on parks, ovals and golf courses, as well as for other appropriate uses.

"I encourage all eligible proponents to submit a proposal and help to secure our water supplies into the future."

Under the proposal guidelines, grants or refundable tax offsets will be available for up to 50 per cent of eligible capital costs.

The minimum project size is $4 million and whilst there is no maximum project size, funding is capped at $20 million per project.

In addition, successful projects are required to source 100 per cent of their energy needs from renewable sources or fully offset the carbon impact of the project's operations.

The special call for proposals opens today with the first round closing on 30 June 2009 and a second round closing on 11 December 2009.

The guidelines will be available from www.environment.gov.au/water or by calling 1800 218 478.