Politicians and grape farmers in the Clare Valley have welcomed the potential to extend the Northern Adelaide Irrigation Scheme to the area.
Primary Industries Minister Tim Whetstone said the state government would conduct a feasibility study into the extension of the scheme.
Almost $60,000 has already been devoted to the Clare Valley Sustainable Water Supply Feasibility Study, which Mr Whetstone said is a game changer.
"This opportunity with more diverse water supply into the Valley could certainly open up more opportunities for the Clare Valley grape growers," he said.
"At the moment Clare is almost ring fenced with the amount of water, underground water and pipe water that comes into the district.
"Some of the catchments are at capacity so this feasibility... will give us a very clear understanding of if it is viable to bring another water source from NAIS."
The study is aimed at exploring opportunities to provide a more reliable and secure water supply for the region's grape growers.
The study has no set time-frame yet as negotiations between the government and the Wine and Grape Association are currently taking place.