The Green Party is criticising Fonterra for reducing pollution in Australia but not in this country.
The company recently invested $NZ1.6 million in technology to recycle waste water into irrigation at a dairy plant in the state of Victoria.
Green co-leader Russel Norman believes water prices and tight regulations in Australia prompted the project.
Meanwhile, he says a Fonterra plant at Pahiatua continues to discharge almost 3000 cubic metres of wastewater per day into the Mangatainoka River.
Dr Norman also urges the Government to sign a national policy statement on freshwater management.