Water users and other stakeholders say they are concerned for the Macquarie River system after Commonwealth Environmental Water Holder (CEWH) Dr Simon Banks announced a pause on all environmental water releases in NSW.

Under a recent new interpretation of water rules, Dr Banks said water reserved under an environmental licence needs to be metered.

He said the change has prompted him to "temporarily" stop water being released into river systems until he is confident that CEWH is compliant with regulations.

The announcement came on 18 August, prompting an immediate outcry from conservationists, graziers, Indigenous groups and other users.

"This shift has included, under NSW laws and regulations, when environmental water is considered ‘take’ as it moves its way down the river and through wetlands, and how this take would subsequently trigger the NSW non-urban metering rules for various pieces of infrastructure," Dr Banks said.

"It is difficult to know exactly how long it will take for these regulatory issues in NSW to be resolved so I can use the Commonwealth's environmental water confidently.

"What I can say is that river and wetland environments are critically important to the people of NSW and more widely, and I do not intend to delay a single day more than I must.

"We understand the concern this pause may cause for Basin communities and the potential implications for the environment. We are committed to providing updates as the situation evolves."

Dr Banks was appointed as the Commonwealth Environmental Water Holder in 2022. [IMAGE: CEWH]

'Take' refers to water removed from a stream for use outside the system.

The Water Holder has not clarified what the previous interpretation was, although water used to improve river health can now be considered 'take'.

Mr Banks also said the change has created "significant complexity," particularly since environmental water is often left in-stream to improve river health and, therefore, not metered.

The pause came within a fortnight of a planned release to into the Macquarie River from Burrendong Dam.

Narromine resident Tony Lees has been involved in planning native fish breeding efforts in the Macquarie, with the success closely linked to environmental releases.

He said flows must be timed to work best.

"We know when we need to do it, but with the pause we'll miss 12 months' worth of recovery for our river. We're still trying to recover from the drought," he said.

"The environment is not going to get those flows if we don't put an end to that pause."

Narromine's Tony Lees. [IMAGE: River McCrossen] 

Stakeholders have also raised concerns for water flows to the Macquarie Marshes, particularly water bird breeding sites.

Marsh graziers Garry and Leanne Hall said they are "in shock" over the decision.

"Environmental water left in rivers is not the same as water take and it cannot be treated the same.

"It's bureaucracy gone crazy and completely unaccountable,” they said.

The Marshes are internationally recognised wetlands under the 1971 Ramsar Convention and is a tourist drawcard.

Macquarie Marshes tour operator Bron Powell. [IMAGE: Bron Powell] 

Local tourism operator Bron Powell has been leading kayak tours in the area for about eight years.

Without the Spring release, she said her business will rely on unpredictable rainfall to provide enough water to paddle on.

"People travel from Victoria, Queensland, all up the east coast. Some people even build a big outback trip around it," Ms Powell said.

"Governments are always talking about supporting Basin communities, and then, here, a lot of people's tourism is potentially going to be blown out of the water."

The Water Holder is responsible for managing water used to protect and restore rivers wetlands and floodplains in the Murray-Darling Basin.

The pause has also drawn concern from Walgett's Dharriwa Elders Group.

Treasurer Ricky Townsend said the pause has triggered a "crisis" for the Marshes.

"We ask Dr Banks to tell us what he is doing to sort out the mess that the NSW Government is making for the rivers and tell us quickly, because he is denying the river and environment water that is required by law to be delivered.

"There will be real consequences for places we care about, right now," Mr Townsend said.

"We need Dr Banks to talk to NRAR (Natural Resources Access Regulator) and the NSW environmental water managers and sort this out."

NSW Irrigators Council chair Tom Green said the decision is a loss for Basin communities.

He also said that it would be "disappointing" if government authorities are not compliant with water rules.

"It's cost a lot of money and stress for industry to be ensure that they're compliant with these complex rules," said Mr Green, who's based in Forbes.

"It's disappointing that these government agencies with so many people don't understand them or haven't been doing their paperwork- if that's the case.

"If the Commonwealth's unsure if they've been doing their job correctly, well, they need to be held accountable to that."

The CEWH has not clarified who instigated the review or provided the updated advice.