Waikato Regional Council says a move by Watercare Services in Auckland to take more water from the Waikato River would mean no-one else could use the supply.
Watercare Services is looking for new sources to avoid Auckland outgrowing its current supply within 35 years.
It already takes up to 27 percent of its supply from the Waikato River and it wants to take up to a third more.
Federated Farmers fears Waikato Regional Council will not leave any water for future projects and opportunities in the region.
But council spokesperson, Brent Sinclair told Nine to Noon the council is still processing Watercare's request, which is one of many it has to go through.
He said the request would use the rivers total allowance.
Mr Sinclair said he can't say if or when Watercare's request will be granted.
