One Nation MP David Farley introduced a motion calling for environmental water to be used to support agriculture this summer.
It follows job losses in the rice industry due to low crop production.
Irrigators are considering water availability and how much summer crop can be planted.
Irrigators and One Nation are calling for environmental water in the Murray-Darling Basin to be made available for agricultural production this season.
The Commonwealth Environmental Water Holder manages a portfolio of more than 3,200 gigalitres of water to improve the health of the basin.
Australia's largest rice processor SunRice laid off 80 workers last month in response to low crop production and the company has asked the federal government to consider making some of that water available for sale to irrigators this summer.
Farrer MP David Farley, of One Nation, introduced a motion to federal parliament last week proposing allocating 75 per cent of available environmental water to irrigators through a "transparent and market-based process".
He has asked the government to respond by early October ahead of the summer crop planting season.
"Miss it and our regional economies contract for another year, catch it and they respond immediately," he told the parliament.
The Commonwealth Environmental Water Holder, Simon Banks, said the benefit programs purchased by the government were subject to the same allocation rules as those held by irrigators.
"When there's less water, against entitlements, which happens in dry periods, we have typically less water available as well," he said.
Federal Water Minister Murray Watt was not available for interview but in a statement said, "Our policy ensures water is sold fairly and without bias, when and where it won't harm the environment, rather than just picking winners."
Murray-Darling Conservation Alliance co-director Craig Wilkins said there would be a cost if water set aside for the environment was made available for irrigation.
"We reject this idea that somehow the environmental water is just sitting there doing nothing," he said.
"It needs to be available for this concerning trend around El Niño for this summer, we've got impacts like bird flu … so we need to get more water onto wetlands to protect our bird life."
The Australian Bureau of Agricultural and Resource Economics and Sciences crop report for September is forecasting rice production will fall by another 22 per cent, while cotton planting is also expected to be down by a third because of the dry season.
Recent rain has brought some relief for irrigators in southern NSW.
The water allocation for general security licence holders has increased by 10 per cent for the NSW Murray Valley to 28 per cent of entitlement.
In the Murrumbidgee Valley there has been a 7 per cent rise to 41 per cent of entitlement.
Burraboi farmers Brian and Alex Martin have set aside 60 hectares to grow rice this year.
"There's something about going around your rice water in the heat of the day with a beer and cruising around checking it," Mr Martin said.
It is estimated that since water buybacks have been introduced, half of the irrigated farmland in the Edward Kolety-Wakool region is no longer used for irrigation.
Mr Martin said that had a big impact on the community
"All the towns have seen a decrease … the news agency for the amount of papers they sell, how many beers the pub pours a week, it just snowballs to every aspect of every community around it," he said.
"Unless they [governments] want to stay out of the water buybacks or sell some water back to us, you'll see a trend, definite trend in the price of food and cost of production."
Berrigan district farmer Noel Baxter will not be using his increased water allocation to grow rice, instead he is planting cotton and maize.
"We haven't grown rice for about 25 years," he said.
"Rice is a great crop and a good industry, but water has become very scarce and expensive and it uses more water than alternative crops and the margins on it just don't stack up."
Mr Baxter said uncertainty around water availability also meant many growers were no longer planting summer crops.