Townsville has been awarded a Smarter Cities Challenge Grant by global technology giant, IBM.
It is one of 24 cities around the world to receive such a grant.
"The grants provide cities with access to IBM's top experts to analyse and recommend ways they can become even better places to live, work and play," the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, said.
The grant for Townsville includes a study of the role that intelligent technology might play to make the city smarter, more prosperous and attractive to current and prospective residents and businesses, Senator Conroy said.
"Smart cities are an important part of Australia's digital economy," he said. ""Intelligent technology can make communities better places to live by making more efficient use of infrastructure, transport, water and energy, and reducing environmental impacts."
Townsville is also one of the first cities on mainland Australia to receive the National Broadband Network.