Deputy Prime Minister Michael McCormack has opened the door to diverting environmental water from the Murray-Darling river system to drought-stricken farmers.
Special drought envoy Barnaby Joyce is pushing for water from the Murray-Darling Basin Plan to be "borrowed" to grow crops for livestock.
The Nationals leader signalled Mr Joyce's idea could become a reality.
"In times of emergency you have to look at all provisions on the table," Mr McCormack told reporters in Canberra on Thursday.
"We need to look at every measure on the table during this drought, during this time of crisis."
The comments expose tensions over drought policy after National Farmers' Federation president Fiona Simson admitted there could be confusion in the space.
Aside from Mr Joyce's appointment, retired major-general Stephen Day is national drought coordinator.
Former Commonwealth Environmental Water Holder David Papps has warned the diverting water could break the law.
Agriculture Minister David Littleproud insists evidence will guide decisions about the basin plan.
"The science of the Murray-Darling Basin Plan is what has predicated the whole plan and will continue to be predicated on our decisions," Mr Littleproud said.
"Science has dictated where we got to. It's important we provide certainty to the two million Australians who live up and down the basin."
Country-based South Australian Liberal Tony Pasin backed the push to divert water.
"My view is that exceptional circumstances may call for exceptional measures," Mr Pasin said.
It comes as the government moves to make it easier for farmers to stockpile fodder.
Assistant Treasurer Stuart Robert introduced draft laws to the lower house on Thursday which allow primary producers to immediately deduct the cost of fodder storage assets rather than over three years.
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