The State and Federal Governments yesterday announced a $1 million plan to divert water from the river into priority sites, including Lindsay Island, Wallpolla Island, Hattah Lakes and Gunbower Forest.

"The mighty river red gums are crucial to the Murray environment," state Environment Minister John Thwaites said. "We have had great rain over the past few weeks and it makes sense to use this water for the red gums."

The number of stressed, dying or dead trees had risen from 50 per cent to 75 per cent between 2002 and 2004, a report revealed last year.

The project will replicate natural flooding that used to occur once every three to four years. It now occurs only once every 10 to 11 years and this is insufficient to flush away accumulating salt.

Mr Thwaites said the water was not being diverted from farms. However, Red Cliffs farmer Jeff Milne donated 25 megalitres. "I have grown up in the area and used to take the flood for granted, but over 50 years you can see things aren't as they were," Mr Milne said.

Federal Environment Minister Ian Campbell said the project showed that governments could work together on "a rapid response for red gum rescue". The two ministers announced the scheme at Johnston's Bend, near Mildura, and watched as water started to flow through a pump into the plains.