Malcolm Turnbull has taken aim at the Queensland government for holding up economic growth and jobs by playing politics with new dams.
But the state government says it has had to find $15 million to cover the cost of feasibility studies because the federal government's arrangements are causing problems for dam proponents.
Mr Turnbull visited central Queensland on Thursday to talk up the need for more water infrastructure, saying Labor was holding it up "for political reasons".
"It's like they have to placate the Left of their own party or the Greens," Mr Turnbull said.
"You're either serious about promoting productivity and exports and jobs and investment in the north, or you're not. We're serious. And to do that you need to put the dollars to work to build the industry."
Asked when one of the projects, the Rookwood Weir, could start, Deputy Prime Minister Barnaby Joyce told reporters: "Tomorrow."
"They should be ready to roll now. They've got to make a call, do they believe in central Queensland? Do they believe in jobs?" he said.
Queensland water minister Mark Bailey said the federal government had offered 15 proponents funds for feasibility studies, but Mr Joyce had failed to tell them they would only receive their funding in arrears.
Mr Bailey said the local councils and small not-for-profit organisations could not operate under such arrangements, so the state government had to step in to help.
Assessments had begun on the Lower Fitzroy River Water Infrastructure project's business case, which includes the Rookwood Weir, he said.
"It's extremely disappointing the deputy prime minister hasn't listened to regional Queenslanders and wouldn't unlock his safe to provide up-front funds to proponents for his own program," Mr Bailey said.
Mr Turnbull and Mr Joyce released guidelines for the national water infrastructure fund in Rockhampton.
It means the $440 million in funding announced in the blueprint for northern Australia last year will finally be opened up for a partnership with state and territory governments and the private sector.
The fund is designed to break ground on water infrastructure such as dams, water treatment, and managed aquifer recharge projects.
"This is a historic investment in Australian water," Mr Turnbull said.
Labor leader Bill Shorten said there was "no question" dams could create jobs.
"Good irrigation networks are important to our farmers but if Mr Turnbull wants to talk up job creation, why has he done nothing to help save the car industry? Why is he putting the renewable energy industries job creation into the future into a period of uncertainty?"
Greens senator Sarah Hanson-Young said handing Mr Joyce a $440 million pork-barrel was a "recipe for disaster".
"There needs to be a fully independent environmental and economic cost benefit analysis done on each and every project before they're given the go ahead," she said.
