The expansion is part of the Meningie Waters canal development which began last week after almost a decade in the planning.

Meningie Waters managing director Greg Toop said final planning approval for the estate was granted in November.

“We’re really delighted to be up and working,” he said.

“The Meningie community has been patiently waiting for this.”

Meningie Raine and Horne proprietor Trevor Rasheed said the project would have a positive impact on the Meningie township.

“It means the population will somewhat increase,” he said.

“We have about 1000 people now, so when this is complete it will double the size of the town.

“It will be good for business, tourism and spin-offs.”

The project includes 300 residential allotments ranging in size from 525 to 3725 square metres, a three-metre deep canal system for canoeing and kayaking sourced from an underground aquifer, reserves for public recreation, walking and bike trails and the possibility of shops and a tavern further down the track.

“We also have a plan in with council for a boat ramp, moorings and jetty on the side where there is a protected bay,” he said.

Mr Rasheed said two of the 18 blocks in the first release had already sold and a further eight contracts should be finalised later this week with anticipation the stage one blocks and first canal should be ready within three months.

Coorong District Mayor Roger Strother said plans for the development had been delayed for the past six years because of drought with some adjustments made to the design to cater for a similar situation.

“Originally the canal system was suppose to be connected to the lake but now it won’t be,” he said.

Mayor Strother said developers had taken into consideration the environmental needs of the lakeside township and had met all protocols.

“This is being developed on a low salty flat area so won’t affect any wildlife in the lake,” he said.

“They plan on using a lot of groundwater to fill the canals and will have to pump some water in.”