The Queensland government is poised to backflip on an election promise to scrap reforms that would allow resource companies to extract large amounts of groundwater for their operations.

A leaked document shows the government will no longer repeal the law introduced by the Newman government, which deregulated the use of groundwater for the mining industry, the ABC reports.

The government will no longer repeal the law that deregulated the use of groundwater for the mining industry. Credit:Rob Homer

Critics fear the controversial legislation could affect regional town water supplies, however the leaked document suggests the government will keep key aspects of the laws so as to implement "a more consistent framework for underground water rights and obligations".

Lock the Gate Alliance president Drew Hutton has criticised the decision as "a disgraceful breach of trust" by the Palaszczuk government.