Heat oil in large heavy saucepan over medium heat until hot. Add onion; cook and stir 2 to 3 minutes or until tender.
Add potatoes, corn, water, milk and salt; stir gently to mix. Bring to a boil. Reduce heat to low; simmer 10 minutes.
Add salmon and lemon-pepper seasoning; cook an additional 10 minutes. Stir in dill.