On Tuesday night, City of Mandurah councillors unanimously endorsed a business case for advanced technology, which will monitor the health of the Peel-Harvey estuary.
The City are now seeking $1.3 million for the project from the state government.
The technology, known as the 'Waterways Data Array' will feature a network of monitoring tools across the estuary to gather water quality data.
The data will also be available to the public, government and research agencies.
Mandurah mayor Rhys Williams said the project was important for Mandurah's environment and economy.
"The motion that council adopted was a really exciting step in both protecting the estuary but also acting as a catalyst for attracting this water science industry to Mandurah to diversify our economy with new science based jobs," he said.
"We've been working really closely with the state government for the past 18 months on their support so we are very confident we will be getting the funding we need to commence the project.
"I'm really excited that over the next 12 to 18 months we will see the 'Data Array' being installed in the estuary and getting both the environmental and economic benefits."
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Mr Williams also said the project would sit alongside fixed infrastructure Peel-Harvey Catchment Council (PHCC) is currently seeking funding for.
PHCC science and waterways program manager Steve Fisher confirmed the 'Waterways Data Array' could be funded to complement the 'Water Research Infrastructure Project' (WRIP).
"The PHCC has put together a business case for the WRIP for consideration by the state government," he said.
"The WRIP will provide research and community engagement infrastructure and equipment to complement the PHCC's programs and to facilitate further scientific research and monitoring activities on the Peel-Harvey waterways."
According to a Department of Water and Environment Regulation (DWER) spokesperson a comprehensive monitoring program is already in place in the Peel region.
"DWER, as the state's estuary manager, delivers a comprehensive catchment and estuary monitoring program that provides the relevant information for decision making in the Peel-Harvey estuary," the spokesperson said.
"In June, the state government announced the $25 million Healthy Estuaries WA program, which will drive action in catchments to improve water quality and restore the environmental balance of estuaries."
The spokesperson also said DWER was currently discussing the 'Waterways Data Array' project with the City of Mandurah and is "open to exploring opportunities should the data array concept progress".