Federated Farmers says Government plans to reform water supplies are a backwards step.
A new group, the Land & Water Forum, has been given 12 months to propose a national solution to the management of fresh water resources.
Agriculture Minister says he expects the right to take water to become a tradeable commodity.
But the Federated Farmers says the Government is wrong to try to solve the problem in Wellington.
Water spokesperson Hugh Ritchie says water allocation processes in many other regions are working well.
He says it would wrong to disenfranchise those groups that are working together well to solve the conflicts in a minority of others.