Driverless cars on South Australian roads are a step closer to reality with the State Government to introduce legislation tomorrow to permit on-road trials.

Transport Minister Stephen Mullighan said the Government wanted the state to become a key player in the emerging self-driving car industry.

"We are taking this out to car companies and also to technology companies making it clear that we're encouraging them to have presence here in South Australia," he said.

Mr Mullighan said the trials would only go ahead among regular traffic under strict conditions.

"We will require companies seeking to conduct a trial on our roads to provide the Government with a very detailed plan of operation for that trial," he said.

"That'll be assessed by the Transport Department, by the South Australian police department and other agencies to make sure that it's appropriate.

"It'll be published up online at least a month before the trial could commence."

Mr Mullighan said the car manufacturers would also be required to have appropriate insurance cover in the case of an accident.

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It is unclear exactly how soon such trials could take place.

"We'll wait to see how quickly the legislation goes through Parliament and once that bill becomes law we'll start discussions with car companies about what sort of trials they might want to conduct on Adelaide roads," Mr Mullighan said.

Next week Mr Mullighan will head to California to meet with Google, a company already testing self-driving cars in some states of the USA.

"They specifically want to speak to regulators and legislators about what sort of operating environment they want to see and I'm very much looking forward of taking over a piece of nation leading reform," he said.

Adelaide-based technology company Cohda Wireless makes sensors for driverless cars.

Chief executive Paul Gray welcomed the move to allow local trials.

"Having this legislation here in South Australia is quite important because that would allow us to test our equipment here on the roads of South Australia without having to go overseas to allow us to test stuff," he said.

Cohda chief Paul Gray, Transport Minister Stephen Mullighan and a worker look at sensor technology. ( ABC News: Angelique Donnellan )

Opposition Leader Steven Marshall said he was sceptical of the industry's benefits to the state's economy.

"I think what the Government needs to do is build the case that this is going to create long-term jobs not just be another pet project and another diversion," he said.

A major driverless car conference will be held in Adelaide in November, with self-driving car trials to be held on the Southern Expressway.

Mr Mullighan said the legislation was not required for those trials because the section of road would be closed to normal traffic.