The Australian state of Canberra is to become the nation's first to introduce recycled sewage to its drinking water.

The Australian state of Canberra is to become the nation's first to introduce recycled sewage to its drinking water.

The rest of the country is expected to follow suit as a record drought threatens water supplies.

Australian farms and most cities are experiencing the nation's worst drought in a century.

Queensland State Premier Peter Beattie announced his government had scrapped a referendum planned for March on whether it should introduce recycled drinking water.

Beattie said falling dam levels left his government with no choice but to introduce recycled water next year in the state's south-east, which is one of Australia's fastest growing urban areas.

Beattie said: "We're not getting rain; we've no choice."

"I think in the end, because of the drought, all of Australia are going to end up drinking recycled, purified water," he added.

Morris Iemma, Premier of New South Wales, the most populous of Australia's six states, said drinking recycled water was not inevitable for major cities including Sydney.

South Australia state Premier Mike Rann said the state already used recycled water to irrigate crops but would not introduce it to drinking water.

Victoria's acting Water Minister, Justin Madden, said it did not need to recycle water.

Prime Minister John Howard predicted recycled water would be introduced to Sydney in the near future.-AP