A Whitehorse company says it is leading the nation in a bid to replace large water cooler bottles with biodegradable bags.

Yukon Springs president Paul Sheridan has been putting water into Yukoners' water coolers for more than 25 years.

He says those big plastic jugs are being replaced.

Yukon Springs water will now be delivered to a watercoolers in a double plastic bag.

"We are the first in Canada to introduce this system," said Sheridan.

The bags are made in part from cornstarch.

The company will re-fit water coolers with reusable containers meant to hold 12-litre bags of water.

Sheridan says the bags are lighter, easier to use, less costly to ship and biodegradable.

He says they can also be put into the freezer for camping or boating trips.