Actew also received approval to buy and store high-security water in Tantangara Dam in the Snowy Mountains as part of the Government's plan to secure water supply for Canberra and Queanbeyan.

The pipeline must meet Commonwealth, ACT and NSW environmental and development guidelines before construction can start.

Building is expected to begin in February and take 15 months to complete.

Actew general manager Mark Sullivan said the projects would take the ACT as close as possible to water security. ''By 2013, we will have permanent conservation measures which should not worry anyone,'' Mr Sullivan said.

''Canberra does not want open slather with the waste we used to have.''

He expected Stage 3 water restrictions to apply next summer.

Environment Minister Simon Corbell said the pipeline would deliver up to 20 gigalitres of water to the ACT.

The Government has also approved the $150million upgrade of the Cotter Dam.

For more, pick up a copy of today's Canberra Times