The federal government has appointed a former high-ranking public servant to assess how Murray-Darling Basin water markets and community confidence can be improved.
The NSW government requested the Narrabri Gas Project to be scratched from a federal government list of fast-tracked projects, due to concerns it would make the independent assessment process appear pre-determined, freedom of information documents have revealed.
"There are extremities on the left and the right, but most Australians are somewhere about the sensible centre."
The committee urged the government to accept the recommendations, noting drought conditions were "likely to become more frequent, severe and longer due to climate change".
The federal government will pump $330 million into five projects designed to save water across the Murray-Darling Basin.
Senior Liberals have insisted Australia signing up to a 2050 net zero climate target will not cost farming and mining jobs as Scott Morrison mulls the Nationals' demands.
An analysis found more than half of the government's regional development grants awarded since 2018 went to major city areas.
When deputy Nationals leader David Littleproud was asked what the party needed in exchange for its support, he responded "money makes the world go around, mate".
Senior Nationals have warned the climate brawl "could get ugly" if the government pushed through a net-zero target, however Prime Minister Scott Morrison has already made moves to sideline the junior Coalition party if it can't come to an agreement.