A $3 million dollar grant for research into waterproofing roads could ultimately save the country a fortune.

Opus Research will use the Government cash to try and create a type of impermeable membrane that will prevent water from entering gravel layers and causing damage.

It will also look at ways to modify chip seals so there's less chance of them being damaged by water.

The company's research leader Peter Benfell says at the moment we spend about $1.2 billion a year on road maintenance - up to a third of that is believed to be caused by water damage.

"We think that if we're successful in the work we do, that within 10 years the savings to the country could be as much as about $80 million dollars a year."

Benfell said at the moment 90 per cent of the roading network gets quite a lot of water damage, as the moisture gets through the seal, surface and gravel layers.

"We're going to attempt to develop a novel, impermeable membrane that will prevent water from entering the gravel layers and causing that damage."

Benfell said they will also look at ways to modify chip seals so there's less chance of them being damaged by water.