Deputy Premier John Barilaro says the government has legal advice that shows NSW can pull out of the Murray Darling Basin Plan if it does nothing to help the state's dwindling water supply.

The Nationals leader sought advice around the penalties NSW could face if it was to withdraw, and last month said he would be prepared to "rip the bloody thing up" if necessary.

The state government has given Bourke funding for a new bore and pipeline to secure its water supply. Credit:Louise Kennerley

In Bourke for a "historic" cabinet meeting, Mr Barilaro said NSW could not afford to "sit back and wait" as the drought worsens and towns face running out of water.

A review into the water sharing plan is due before Christmas and while he said no decisions would be made prior, Mr Barilaro said NSW could walk away.