The SA Government has proposed a $155 million extension of a recycled water pipeline through Adelaide.

The Virginia Irrigation Scheme currently delivers about 17 gigalitres of recycled water each year from the Bolivar Wastewater Treatment Plant to hundreds of farms in Adelaide’s north, but under the new proposal this would be expanded to deliver a further 12 gigalitres to the Two Wells area.

Premier Jay Weatherill says the state is seeking a $45.6 million commitment from the Federal Government to add to $110 million of its own money.

“It's estimated through modelling that we will create 3,700 jobs over the next 10 years in this sector,” he said.

“[Agriculture] already accounts for one-in-five jobs in South Australia. It's an incredibly important industry in South Australia, so this investment will unlock even greater opportunities.”

SA Environment Minister Ian Hunter said the recycled water is about six times cheaper than mains water.

“It's a great resource. It's great for the environment to actually use this water again than put it out to the Gulf [of St Vincent],” he said.

“It's a very high-value product of course. Everybody understands that with water.”