A Tasmanian dairy farm fund backed by local farmers has acquired the Whitewater Dairy at Edith's Creek in the state's far north-west as it carves out a foothold in a region dominated by offshore corporate farming interests.

Circular Head Farms, founded in 2014 by dairy farmer Steven Fisher, paid $10 million for the 352-hectare dairy to add to six farms and more than 1000 hectares owned by the community investment group.