But while grapegrowers will be elated, for many primary producers it will be too late.

Langhorne Creek Wine Industry Council chairman John Pargeter said the pipeline was only a "delivery mechanism" to get access to better quality water upstream and to utilise the extremely limited allocations.

"But there still needs to be water allocated by the government for environmental flows to improve the health of the Lower Lakes," he said.

According to an economic impact survey produced by Langhorne Creek grower groups, an estimated $3 billion in wine production and $360m in wages over the next five years could be at risk if the water shortage in the Lower Lakes does not improve.

The survey also estimated that $260m in on-farm spending and $1.91b in economic flow-on benefits to the region could also be lost as a direct result of water constraints.

It is estimated more than 8200 hectares of vineyards and other irrigated enterprises are dependent on the Lower Lakes.