A $4.4 million inland saline prawn farm is to be built near Waikerie in the Riverland, creating up to 45 jobs.

The aquaculture farm will have a hatchery, three 500-tonne fish farm units and a processing plant.

It is expected to process about 1,500 tonnes annually.

Project developer A-Culture Holding has been involved in farm trials with the South Australian Research and Development Institute.

A-Culture managing director John Henderson said water would be drawn from the Woolpunda salt interception scheme pipeline and returned to the system after use.

"Basically the water ends up in the same place, we just make a use of it in the meantime," he said.

Work on the prawn farm is expected to begin later in the year and it is expected to be fully operational by the end of 2014.