Queensland is considering linked regional water grids in four reguions where climate change is likely to make water scarcer in coming years.
Water grids are networks of pipelines and pumps that move water between providers and users in catchments or urban areas.
A state government-appointed panel, headed by economist Ross Garnaut, has rejected a vast $22.5 billion inland water grid known as the Bradfield Scheme.
The panel's report says there is not enough water available for the fourth version of the project, originally dreamt up by engineer Dr John Bradfield 84 years ago, for it to work.
"There is no economic, environmental, social or cultural heritage case for immense storage of water in northern Queensland with a view to its movement over long distances west and south for irrigation," said the report, released on Thursday.
"The panel recommends against proceeding with any of the Bradfield or Bradfield-like proposals"
However, the panel said mini-water grids could be useful for Cairns, Townsville, Rockhampton and Bundaberg regions where there is "a strong possibility of significant decline in average water availability" due to climate change.
The average availability of water has already fallen in the Fitzroy and Burdekin rivers and will occur in the Barren and Burnett rivers in coming years.
"With four working grids in place, the value of inter-linking them could be assessed to provide greater water security and more efficient water use through trade in allocations across regions," the report said.
"There could be some linking of northern and central Queensland Regional Water Grids where this could be achieved at low cost."
The Queensland government has promised to study the feasibility of four new grids in the Barron, Burdekin, Fitzroy and Burnett River catchments.
The panel said future water scarcity will make investments in long-term storage and distribution such as pipelines through grids much more worthwhile.
"Highly secure water will be more scarce and have higher value than before," the report said.
"That means there will be more value in investing in it than before, when increments of increased security can be achieved at reasonable cost."
"In some circumstances, it may be the basis for analysis that justifies higher levels of capital expenditure to increase the proportion of water that can be committed with confidence for all or most years."
The panel said water allocations for agriculture and other industries would likely need to change, and hardier food crops that don't need as much water should be prioritised as the climate changes.
"This is a new consideration and requires us to undertake more research and development on plants that have these characteristics," the report said.
