The state government is seeking tenders for the $25 million rebuild of the South Australian Dog Fence.
A total of 1600 kilometres of the fence is being rebuilt, with the government noting the project would require up to 71,000 timber posts, 127,500 steel droppers and more than 7000km of wire.
It is also expected to create up to 63 full-time jobs by the third year of the project.
Primary Industries and Regional Development Minister Tim Whetstone said the project was funded by the state and federal governments, as well as industries, and was a "mammoth" task.
"With our pastoral areas facing the challenges of drought, this project will not only limit the impact of wild dogs on our $4.3 billion livestock industry but also provide extra employment opportunities," he said.
"Independent analyses commissioned by the state government and Livestock SA earlier in the year showed the positive impact on gross state product from the rebuild is expected to be $1.8 million in the first year, $8.1 million in the third year and $5.3 million in the 20th year.
"The rebuild of the dog fence will be tailored to suit the problems pastoralists are having in localised areas, and we'll be working closely with the Dog Fence Rebuild Committee, four local dog fence boards and a private fence owner on the most effective design and the priority areas, which need to be rebuilt first."
Mr Whetstone said the government recognised the fence was the "most important asset" in protecting the sheep industry and it had been significantly damaged over time by kangaroos, emus, feral camels and wild dogs, with the issue exacerbated by drought.
Meanwhile, South Australian sheep producers have started to contributing to the rebuild with a 12-cent increase in the South Australian Sheep Industry Fund going towards the project.
The increase from 55 cents to 67 cents per sheep sold under the Primary Industry Funding Schemes Act 1998 was announced as part of the livestock industry's $5 million contribution to the rebuild.
Mr Whetstone said the industry would strongly benefit from a rebuilt dog fence.
"Industry's contribution to the dog fence rebuild through the additional 12 cent increase per sheep sold has been strongly supported due to the benefits South Australia's sheep industry will gain from reducing the threat of wild dogs," he said.
"It is important there is a clear message to sheep producers and livestock agents that the extra 12 cents on each sheep sold is going directly to the fence rebuild.
"Once industry has committed its $5 million share of the rebuild, additional contributions such as this 12 cent increase will cease."
Livestock SA president Joe Keynes said they listened to producers' concerns about the threat of wild dogs and what the rebuild would mean for the industry.