QUEENSLAND Premier Campbell Newman says regional mayors are concerned they don't have the cash to pay for infrastructure to accommodate an influx of residents.
But he's told councils they're sitting on a "gold mine" and with a shift in thinking they will be able to generate enough money.
Speaking at a local government conference in Cairns, Mr Newman told delegates that under the state's 30-year plan about half the population would be living outside the southeast by 2043.
Currently about 65 per cent of the Queensland population lives in the southeast.
Mr Newman said some mayors had raised concerns about how they would afford to pay for extra infrastructure needed to accommodate the influx.
"Many councils are saying to me that we don't have the money just as we the state don't have the money," he told delegates.
"And yet frankly you're sitting on a gold mine.
"The decisions you make or don't make are the differences between success and failure."
Mr Newman suggested councils look at ways to boost revenue by capitalising on local resources such as council land.
He also said turning to the private sector to build utilities such as water and sewage treatment plants would ease the burden.
"They will fund it ... and operate it and simply charge you a fee for service and help you drive your dollars further," Mr Newman said.
However, the state government would help out.
"As the state government's finances improve we will be putting more money into the regions in terms of infrastructure," Mr Newman told reporters.
Some cities, such as Maryvale, already had the infrastructure to accommodate more people, he said.
Mr Newman said one of the huge challenges was encouraging people to the regional areas but cheaper housing, jobs and possibly incentives would be drive the population shift.
He said the southeast would face "big challenges" mainly around infrastructure if there wasn't a population shift to regional areas.
Local Government Association of Queensland CEO Greg Hallam says the association is looking forward to working with the state government on any initiatives that emerged out of the Queensland Plan consultation process.
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