The Environment Minister has argued only people who have a "connection to farming" should be allowed to own water in the Murray-Darling Basin.

Key points: Sussan Ley says trading water without having a connection to farming fails "the pub test"

Sussan Ley says trading water without having a connection to farming fails "the pub test" She wants Water Minister David Littleproud to change rules so only farmers can trade water on temporary markets

She wants Water Minister David Littleproud to change rules so only farmers can trade water on temporary markets Major olive grower Rob McGavin said Government intervention was needed to lower water prices

Speaking on radio station 2GB, Sussan Ley, who represents the regional NSW seat of Farrer, said rules around water trading needed to change.

"I don't think it passes the pub test for someone who has no connection with a farming operation in the basin to be holding temporary water and speculating on that water," she said.

"And the faster we get to changing those rules, the better."

Ms Ley made the remarks when asked if a private enterprise that did not own land should be allowed to own water.

"Well it doesn't make sense, does it? And that's why [Water Minister] David Littleproud has asked the ACCC to have a look at this," she said, referring to the competition watchdog's inquiry into water markets.

"We don't want people outside, who have no connection to farming, to own water. That's my personal opinion and I'm confident we'll get to that."

Irrigators across the southern Murray-Darling Basin, including in Ms Ley's electorate, have been frustrated by unintended consequences of the water market.

Ms Ley's comments come as Australia's largest olive grower has been meeting with politicians in Canberra calling for a temporary ban on water trading by businesses that don't use water to grow produce.

Scott Morrison made Sussan Ley the Environment Minister after May's federal election. ( ABC News: Toby Hunt )

Boundary Bend founder Rob McGavin said urgent Government intervention was required in the water market, as water prices nudged $1,000/megalitre.

"Dairy farmers can probably pay $200/ML before they're losing money and the best horticulture crops are around $650/ML … there's a huge amount of despair and anxiety," he said.

"I just think the urgency can't be overstated how important it is that the water allocated to be used is actually made available for irrigators to buy."

Mr McGavin also called for a temporary change to the rules so that only farmers who use water to grow produce are entitled to carry over water from one season to the next.

"We can't make it rain," he said.

"But what we can do is ensure that only people with a consumptive need or a use can buy water, because if we don't keep those people alive the communities will also slowly die."

Rob McGavin wants Government intervention into water markets. ( ABC Rural: Kath Sullivan )

Mr McGavin's business relies on trading water to maintain his olive trees, which require water year round.

He argued that people who own water to trade, rather than to grow produce, are having a detrimental impact on the market.

"They're playing within the rules — but the rules have changed to put the balance of power and negotiation away from irrigators and to water owners with no consumptive use," he said.

Other users in the water market have proposed a water trading exchange be established, to improve transparency in the market.

Water Minister David Littleproud has flagged possible Government intervention in the water trading market.

The ACCC will host a series of public forums across the basin from early next month and must provide an interim report to the Government in May next year.

The Murray-Darling Basin will be the subject of a Senate Estimates hearing in Canberra today.