The controversial proposed Traveston Dam in south-east Queensland is to be the subject of a federal parliamentary inquiry.

The Senate's rural and regional affairs committee is to examine the "merits of all options" for additional water supplies in the state's south east.

The Senate agreed to the motion put forward by Nationals Ron Boswell and Barnaby Joyce along with their Liberal Party colleague Russell Trood.

Senator Trood described the decision as a win for the residents of the Mary River Valley.

"I am delighted that the Mary River valley residents will now finally have their say about an environmentally, economically and socially unsound proposal that will not solve the water crisis in south-east Queensland," Senator Trood said in a statement.

The Mary River Council of Mayors last year commissioned an inquiry aimed at stopping construction of the $1.7 billion dam near Gympie.

The report found that the dam would cost almost three times as much as other water supply options.

Areas to be examined by the Senate inquiry include the social, environmental, economic and engineering impact of the various schemes.

Source: Courier Mail