Responding to SA Premier Mike Rann's plea yesterday, Acting Prime Minister Julia Gillard said state governments had agreed to the rules for managing the water in the Menindee Lakes, which are controlled by the NSW government until they reach 640 gigalitres.

"If Premier Rann seeks to have those rules renegotiated then the federal government is happy to facilitate any such negotiations," she said. "Obviously, we would need a specific proposal."

On January 4, the SA government said it would not lift water allocations to the state's farmers, who are now receiving 48 per cent of their entitlement, as water storages had not risen.