Major capital works spending outlined in the 2005 NQ Water budget will cater for growth in the twin cities.

This follows the release of statistics showing the population of Townsville and Thuringowa has reached 150,000.

Chairman Ian Hamilton outlined the plans to increase capacity to key growth areas in Townsville and Thuringowa.

"NQ Water has done its planning on growth projections," Mr Hamilton said. "That includes consulting with the two councils to identify areas of demand.

"We've been targeting resources to the south of the city to include extension of the Mt Jack pipeline and building the $1.6m Brookhill Reservoir at Oak Valley.

"NQ Water is also building a $1m pipeline from the Mt Louisa Reservoir back to the Dalrymple Road mains. This will facilitate new development at Mt Louisa and increase water pressure at Kirwan.

"Magnetic Island is also catered for with the $5m pipeline replacement project from the mainland. Another $779,000 is being spent to build a distribution pipe on the island which will augment pressure."

Another $450,000 is committed to upgrading the emergency intake from Black Weir to feed Douglas Water Treatment Pant.