South Australia has called for a judicial inquiry into allegations that billions of litres of water from the Murray-Darling Basin, earmarked for the environment, is being used by NSW cotton farms.
Water Minister Ian Hunter says an urgent COAG meeting should be called to set up the judicial investigation.
"That inquiry should have terms of reference that will make recommendations about a new national regime of compliance and enforcement for the basin plan," Mr Hunter said on Tuesday.
The allegations which emerged in an ABC Four Corners program claim that billions of litres of water earmarked for the environment was being used to irrigate NSW cotton farms.
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Conservation SA has backed the government's calls for an inquiry, stressing that the public's confidence in the basin plan has dwindled.
"Every litre paid for by taxpayers to aid the river's long term health that ends up stolen by upstream irrigators is an attack on the Murray-Darling Basin Plan and a direct hit on SA," Conservation SA chief executive Craig Wilkins said in a statement.
Greens federal senator Sarah Hanson-Young said she would call for a inquiry into the Murray-Darling Basin Plan in August when parliament returns.
"We've heard such serious allegations that things are not working properly, that the taxpayer is being ripped off (and) that the environment is being ripped off," she said.
