Professor Rob Evans, director of the NICTA Victoria research laboratory, said the research is use-inspired.

"We look for a problem in the community and set out to use the latest technology to solve it," he said.

"We're not interested in research for research's sake."

Professor Glyn Davis, University of Melbourne vice-chancellor said the university has donated the premises for the laboratory as well as staff and students.

"Our water research center is working with NICTA, in conjunction with Goulburn Murray Water, on a state government-funded project examining methods of smarter irrigation," Davis said.