"The RGA has been asking the Federal Minister for such a committee since the buy back process started in February," president, Les Gordon said.

"The water market is not a mature market, it is not regulated and there are no clear market signals available to irrigators on the true value of their water.

"We are concerned that as the biggest player in the water market, the Federal Government can easily distort the water price and take advantage of irrigators who are under desperate financial pressure.

"The RGA is pleased that the membership of the committee includes a number of irrigators and community representatives who understand the issues at the farm gate.

"Governments come and go, so it is important that the rules around water purchase are locked in for the long term to provide certainty for those of us who produce food."

Mr Gordon said irrigators cannot go on investing in their farm businesses when there is so much uncertainty around their water rights.

"The RGA understands the need for a balance between the environment and food production in the Murray-Darling Basin," Mr Gordon said.

"We can’t let this drought ruin our river, but nor can we let our communities and farm businesses ability to produce food, particularly staples like rice, be diminished in any way."