Environmental concern has clouded the launch of a hazardous waste dump in southern Tasmania.

The $6.7 million site in southern Tasmanian, known as a C-cell, will soon receive its first load of waste that is too contaminated to be dumped at regular landfill sites.

The storage area is triple lined with plastic and clay to avoid contamination of groundwater, according to its owner, Southern Waste Solutions.

Community opposition to the project has been around since it was first announced in 2012.

Local residents remain concerned about the possibility that contamination from the dump will spread to nearby waterways.

Environmentalists say Tasmania's first landfill for this level of waste may mean companies will not look at other ways of reprocessing contaminated materials.

Environment Protection Authority (EPA) chief Wes Ford says businesses now have an alternative to sending waste out of the state to Victoria or Queensland for disposal.

“Or alternatively and worse for Tasmania remaining in storage or sheds on these sites all across the state,” he said.

The operators of the tip site say its gate fees for delivery will send a price signal to waste producers, which may make them look for ways to stop producing the waste.