More than seven hundred gigalitres of Murray-Darling Basin water used for farming each year could be allocated to the environment.
The Albanese Government struck a deal with the Greens which includes one-hundred million allocated to help First Nations people to participate in the water market.
Water and Environment Minister Tanya Plibersek says she was still negotiating with the crossbench to support legislation.
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Deputy Liberal Leader and Member for Farrer, Sussan Ley, has slammed the deal.
She has labelled the legislation as a ‘dirty deal’.
Ms Ley says the move breaks a 2012 bipartisan agreement to balance economic, social, and environmental outcomes in the Murray Darling Basin.
