A FEDERAL Labor government would fund its share of the pipeline from the Goulburn system to Ballarat, including the Bendigo leg.

Opposition leader Kevin Rudd made the announcement during the Labor state conference last Saturday.

Mr Rudd said his government would provide $115 million in funding for the $278 million Goldfields Pipeline project linking Bendigo and Ballarat with the Waranga Basin water system.

The announcement took the government by surprise as it waits for the National Water Commission to evaluate the project.

Federal member for Bendigo Steve Gibbons said the federal government had "refused" to announced the funding.

"If there is no commonwealth funding for this vital project then water consumers throughout central Victoria will pay up to 25 per cent more for water," he said.

"This means a huge increase for all customers and particularly those who use large quantities of water and will impact most severely on Industry and the business sector by adding substantial costs to what is an essential requirement.

"The application for funding from the Howard government’s National Water Commission is just $25 million for the Waranga to Eppalock section of the pipeline." Mr Gibbons said the pipeline will have the capacity to provide up to 20,000 megalitres of water a year – providing security and certainty for Bendigo.

"The Goldfields pipeline may become Bendigo’s lifeline. I call on the Howard Government to stop playing political games, follow Labor’s lead and provide the $115 million requested by the state government, Coliban Water and the Central Highlands water authorities for these essential projects for Bendigo and Ballarat," he said.

Bendigo Liberal candidate Peter Kennedy accused Mr Rudd of undermining the NWC by making the announcement.

"Mr Rudd’s premature and reckless announcement that he would fund the pipeline without all economic data being available shows Labor has no respect for the independence of the NWC, an independence the Bracks Government agreed to when the commission was established," Mr Kennedy said.

"Labor is more interested in irresponsible pork-barrelling while communities in Bendigo and central Victoria struggle through Labor’s summer of shame.

"Mr Rudd needs to just pick up the phone and bring his Victorian counterparts to account, tell them to support the NWC and immediately produce the information."