Etheridge Shire Council has officially opened Charleston Dam in central northern Queensland.
The dam project opened last Friday evening with Deputy Prime Minister Barnaby Joyce and Senator Susan McDonald in attendance.
The dam is situated six kilometres downstream of Forsayth and 31 kilometres upstream of Georgetown on the Delaney River.
Etheridge Shire Council mayor Barry Hughes said the dam was built primarily for town water supply purposes.
"It is a water facility for the communities of Georgetown and Forsayth to supply both regions with a reliable source of drinking water and domestic use," he said.
"It has delivered continuity and security around the water supply issue that has been dogging both these communities for a long time."
Mr Hughes said both the Georgetown and Forsayth regions had been subjected to climatic conditions in terms of water supply security.
"Forsayth has relied on a very old dam that was put in by the railways back in the early days when rail was first bought out from the east coast from Cairns," he said.
"The quality of that water has been deteriorating over a long period of time.
"The cost of treating that water has escalated in relation to the poor quality and the overall water in Forsayth has been posing a lot of challenges to the council."
Mr Hughes said the drought had impacted supply issues in Georgetown.
"Water is drawn from the bed sands in the Etheridge river system and the drought years have really highlighted the demand on that system is exceeding the capacity to supply," he said.
"The Charleston Dam will alleviate and give security around that water supply."
Mr Hughes said the project had been an accumulative project of the Etheridge Shire Council over the past three decades.
"Progressive councils over the last 30 years have been talking about doing something around the water supply issue," he said.
"It came down to political will, availability of funding and mounting a case for a project of this scale and size.
"Over the past 10 years we have been able to put together submissions to secure that funding and here we are."
The Charleston Dam has a carrying capacity of 13,000 megalitres. The facility will supply 100ML of water per annum to Forsayth and 500ML of water to Georgetown.
The total project cost $20.7 million and was jointly funded by the Australian Government and Etheridge Shire Council.
Deputy Prime Minister Barnaby Joyce reiterated the importance of water in rural communities.
"Water is wealth and a dam is a bank," he said.
"We are delivering for the people of this region and this project will help accelerate the development of their towns, making them wealthier and stronger."
The dam will also provide recreational purposes for the local community and visitors.
Mr Hughes said water based activities such as boating, canoeing, jet-skiing and fishing for native species will be on offer.
"This project is game changing not only for the locals in terms of their reliable water source, but from a recreational point of view as well," he said.
"On a local level this is going to add to the livability aspect of what Etheridge Shire has to offer.
"From a regional perspective, this is a fantastic asset for each and every traveller that comes through our shire in the tourist season.
"Charleston Dam will provide a water recreation area alongside experiencing what else is on offer here in Etheridge Shire."