Ten remote communities across the Northern Territory will receive funding to enhance water security and infrastructure.

The joint Federal and Northern Territory government announcement will see $34.3 million invested to improve water supply and quality, and comes in the wake of a NT Court of Appeal ruling the Territory government is legally required to supply safe water for its tenants.

The Better Bores for Communities program funding is targeting improved water supply and quality, as well as supporting growth and development.

Greater certainty of water availability will be introduced in seven communities, and there will also be an expansion of water supply in three others across the NT.

NT Senator and Minister for Indigenous Australians, Malarndirri McCarthy, said there were "too many" Indigenous communities across the Territory that "don't have access to clean and reliable water".

Minister McCarthy said the funding was a demonstration of her government's commitment to "improving life outcomes for First Nations people".

"The Albanese Government will continue to work closely with our state and territory partners and First Nations organisations and representatives across the country to identify, plan and deliver future water security projects," she said.

The funding split will see a commitment of $27.8 million by the federal government through its National Water Grid Fund, with an extra $6.5 million being allocated by the NT government.

"This investment will address critical water needs in remote areas," NT Community Development Minister, Steve Edgington, said.

"Water availability is often the main obstacle to new housing and community infrastructure development, and contributes to broader issues such as overcrowding, poor health outcomes and exacerbates other social problems remote communities are facing.

"Without expansion of water source capacity in many communities, new houses cannot be built."

The program will conduct water source investigations, as well bore drilling, in Robinson River, Warruwi, Yuelamu, Titjikala, Finke, Atitjere and Gapuwiyak.

Labor and Lingiari MP, Marion Scrymgour, in congratulating the joint-government announcement, said water from bores was a "vital resource," especially in remote parts of the country where the quality of water is "often difficult to access, and rainfall may be irregular".

"Well functioning bores are a viable alternative for delivering safe and reliable water, while also lowering environmental impacts and enhancing community self-sufficiency and resilience," Ms Scrymgour said.

Essential equipment will also be installed in the Wugularr, Haasts Bluff and Ntaria (Hermannsburg) communities to connect new water sources, with Power and Water Corporation leading the works.

"Every Australian should be able to drink water from the tap, no matter where they live," Federal Minister for the Environment and Water, Tanya Plibersek, said.

"That's why we're investing in projects to deliver critical water infrastructure projects in First Nations remote communities, ensuring they can remain living on Country."

The issue of safe, drinking water has been prevalent across the country, especially for remote communities, who have long complained of rudimentary human rights violations in regards to their water access.

On Christmas eve, a long running saga came to an end when the NT Court of Appeal ruled the NT Government, through its public housing landlord, was legally required to supply safe water to tenants.

In November last year, the NT government challenged a Supreme Court ruling which said the landlord was required to supply running water to its leased premises.

Its alternative argument was that landlords are not responsible for ensuring the drinking quality of any water that is supplied.

The Court of Appeal found landlord's obligation to ensure habitability requires that they arrange for the supply of water and ensure it is safe.

It highlighted houses in Laramba - whose residents brought the case - were fitted with taps, toilets and other facilities to deliver water, and tenants could reasonably expect such services.