Melbourne has the best tap water

Like wine tasting but without the after-effects, judges sipped water samples in a blind taste test format judging colour, clarity, odour and taste.

Managing Director of the Water Industry Operators Association,  George Wall, said the friendly contest is all about showcasing the work of local water providers keeping their communities sustainable with safe drinking water.

"We want to use the competition to let people know the great work that is going on in local communities around Australia, and help to shape and secure Australia's water future," he said.

More than $1.1 billion was committed in last month's budget through the National Water Grid Fund to develop infrastructure projects including the Paradise Dam upgrade in Queensland and Manton Dam in Darwin.

As the winner, Melbourne will go on to represent Australia at an international competition in West Virginia, USA next February.