The Rotary Club of Waverley has launched charity project Gold Coin for Tap Water to raise funds for children that are in need in rural parts of the state.

This week, many Monash restaurants will use yellow money boxes to collect funds that will be distributed in time for Christmas.

Rotary Club of Waverley president John Brownlee was excited by the prospect of the community playing 'Santa' to many children who were deprived of what most of us took for granted.

"It's really simple. Restaurants already provide free water to diners. To show their appreciation, diners will be invited to contribute a gold coin when given water. All money raised will go directly to children in need."

The Gold Coin for Tap Water project has already been a great success overseas, raising millions of dollars for the United Nations' children's organization UNICEF.

"To the best of our knowledge, this is the first time that such a project has been developed in Australia."

The Rotary Club of Waverley has received a positive response from local restaurants.

The Bendigo Community Bank in Pinewood will supply 500 money boxes to restaurants in Glen Waverley, Mount Waverley and Syndal.

Mr Brownlee said members looked forward to being kept busy emptying money boxes ready to be refilled.

Participating restaurants will have a sign in their windows.