Seven steel tanks made in kit form will be supplied through the generosity of Rotarians, a sheetmetal construction business, local suppliers and a Melbourne community group.

They were trucked out of Warrnambool on Monday to be shipped to Dili for the project based in the south-west district of Letefoho.

The idea came after Warrnambool East Rotary Club members Andy Graham and Noel Bayley inspected the region's inadequate water supply system last year.

"Noel and I walked the length of the 15-kilometre water main to check for leaks," Mr Graham said. "I got the idea to make tanks in Warrnambool and ship them over in kit form, then teach the locals how to reassemble them for their village.

"It's an experiment.

"If it is successful we will make bigger tanks for the supply line.

"The system could also be used in many other developing areas."

Mr Graham said his business, McLaren's Sheetmetal, was donating labour for construction of the 3000-litre tanks.

He will travel to East Timor in October with a staff member to teach villagers how to reassemble the tanks.

The Rotary club has donated tools for the villagers. Funds are also being provided by the Friends of Ermera Group based in Melbourne.