Labor will attempt a political Trojan Horse manoeuvre in the upcoming water debate, pairing controversial Murray-Darling Basin Plan changes with the broadly supported reform to the nation's water market.
The water market reform, designed to make the system more transparent, is widely endorsed by landholders. But the proposed amendment to the basin plan, which will make it easier for the government to purchase water licences, has been collectively condemned.
The Albanese will introduce the measures to the parliament as a single piece of legislation in September.
National Irrigators' Council chair Jeremy Morton said Labor politicians had "rocks in their heads" if they thought regional communities were so desperate for water market reform they'd accept water buybacks.
"It's pretty simple - we can live with the water market, but not the other crap they want to do," Mr Morton said.
"What they're proposing with buybacks is going to decimate Murray-Darling Basin communities. They can jam that bit up their ass.
"These are completely unrelated issues and should be treated separately."
The water market reforms come in response to an investigation by the Australian Competition and Consumer Commission, requested by the former government.
Although it found no instances of market manipulation, the ACCC made 23 recommendations to make the market more transparent, which the government has accepted.
Coalition water spokesperson Perin Davey said the opposition supported water market reform in-principal, but pairing it with the changes to the basin plan could be forced to vote down the legislation.
"It ties our hands... it really should be separate," Senator Davey said.
"We might accept all of the proposed market changes. But if it has to be passed with changes to the basin plan, we might not accept it."
National Farmers' Federation water committee chair Malcolm Holmes said the move was "disingenuous" because the two issues were completely separate.
"This is typical government tactics, piling it all in one thing and saying 'pass the lot or you get nothing'," Mr Holmes said.
Under the proposed changes to the Murray-Darling Basin Plan, which include extending its timeline and opening it up environmental water buybacks, the Australian government could become an active player in the water market
Federal Water Minister Tanya Plibersek said the growing water market was why the reform was so important. She criticised the former Coalition government for allowing foreign entities to purchase water, yet standing in the way of the Australian government of purchasing water.
"It makes no sense that the previous government was content to allow water purchase by companies associated with the governments of other nations but doesn't want to allow the Australian Government to buy water to protect the Australian environment," she said.
"We believe the Australian Government should be able to buy water for the environment too."
The federal government has no say in who can purchase water under the current free-market system. About 11.3 per cent of Australian water is foreign-owned and used on foreign-invested agricultural operations.
Ms Plibersek said the Coalition "sat on their hands and did nothing about cowboys" operating in the water market. However the ACCC report found no evidence of illegal behaviour.
The water market reforms are expected to include a mandatory Water Market Code, stronger insider trading prohibitions, data reporting obligations and an accessible water trading database managed by the Bureau of Meteorology.