Farmers in NSW say they hope the resignation of the Murray-Darling Basin Authority's chairman will prompt a restructure of the current basin plan.
Michael Taylor has resigned amid a dispute over legal advice about the Water Act and the authority's role.
Mr Taylor, in a statement about his resignation, said the Act meant his agency could not "compromise the minimum level of water required to restore the system's environment on social or economic grounds".
NSW Farmers Association president Charles Armstrong said there was obvious "policy confusion" troubling the authority.
"Mr Taylor has identified fundamental problems with the way the basin plan is being approached," he said in a statement.
"We want to see the practical detail of how the planning process will now proceed and how it will be resourced and administered.
"A huge body of technical work needs to be done at local level to get the detail of the plan right and this must be connected up across state and federal jurisdictions."
Mr Armstrong said local communities needed to be engaged and provided with the resources to help them identify and design irrigation efficiencies, environmental watering plans and restructuring plans.
"This is the only pathway to a truly sustainable basin plan," he said.
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