Queensland's water minister says the state will fund a $1.2 billion dam upgrade alone if the federal government refuses to chip in.
The state government announced it would commit $600 million towards upgrading the Paradise Dam, near Bundaberg, which authorities have long feared could collapse during an extreme weather event.
The dam was damaged so badly during ex-tropical Cyclone Oswald in 2013 that the water level had to be lowered by six metres to prevent a disaster.
Premier Annastacia Palaszczuk says the funds will go towards reinforcing the dam so the original water level can be restored and she expected federal Water Minister Keith Pitt to match the state's $600 million commitment.
"We now want to see a matching commitment from the federal government," she told reporters on Tuesday.
"We've worked very cooperatively with the federal government on Rookwood, we're where we've been able to secure joint investment, and now we're asking the federal government to match our commitment to this today.
"The local federal member, I understand, is the federal water minister, so I can understand why he would not agree to this."
However, Queensland Water Minister Glenn Butcher also said the state is prepared to go it alone on the $1.2 billion project, if the Commonwealth won't commit the other $600 million.
"Well, I know the premier and I do know very well, we will commit to whatever the shortfall is if they don't come on board," he told reporters.
"This premier will get this dam built."
AAP has sought comment on the Paradise Dam funding from Mr Pitt and Deputy Prime Minister Barnaby Joyce.
The state government estimates that the project will start in 2023 and create up to 250 construction jobs.
Mr Butcher said the improved dam will help guarantee Labor's election commitment of 15 per cent discount on water charges for farmers using public irrigation schemes, and half-price water for fruit and vegetable growers.
An Commission of Inquiry last May reported that the Paradise Dam had structural issues but that more testing to determine their extent.
It recommended a stronger independent review of new dam construction, better integration of geotechnical and hydraulic engineering and more rigorous compliance checks.
"Implementing these recommendations swiftly will help us to ensure that the community can be confident in the safety and security of every new dam built in Queensland," the report stated.
The report into Paradise Dam follows one by the state's Inspector-General for Emergency Management, which was released in December 2020.
That report found the strength of the dam's spillway was an unacceptable risk to the community, and that the dam had been further compromised by damage during a flood in 2013.
Both reports found dam operator Sunwater had been responding appropriately to the risks.