The Goulburn Murray Irrigation District Water Leadership group hopes to be able to release its definition of socio-economic neutrality principals, under the Murray Darling Basin plan, within weeks.
GMID Water Leadership co-chair David McKenzie said representatives of a breadth of industries and organisations attended a workshop in Shepparton, where the test was discussed.
"We had a wealth of knowledge and expertise in the room and a lot of robust discussion about what socio-economic neutrality means for the GMID,” Mr McKenzie said.
“That will put us in a very strong position when it comes to advocating for the needs of this region.
"We have agreed on a way forward and the next step is to now flesh out the detail of our position and put that to Basin Governments for consideration.”
He said with only three months left until a new test was due to be finalised, the group was hoping to deliver its view of neutrality principals, in the coming weeks.
Independent Shepparton MP Suzanna Sheed said the workshop was an important step in securing a strong future for the local irrigation industry under the Murray Darling Basin Plan.
"We brought together leaders from across the water, agriculture, environment and business industries to take a detailed look at the impact of further water recovery on our region and develop a united position on protecting our communities from further harm," Ms Sheed said.
"The Federal Government has said it will widen the socio-economic neutrality test for recovering an additional 450GL of water from productive agriculture and we want to contribute to that discussion.
"What came through mostly strongly was recognition that any socio-economic test must go beyond individual participation and consider the broader regional impact on communities."
The Productivity Commission has criticised the Federal Government for starting recovery of an extra 450GL environmental wate,r without an agreed strategy to ensure there were no negative social or economic impacts.
Ms Sheed said the Commission supported the advocacy of Goulburn Murray Irrigation District (GMID) communities who were fearful the loss of more water from productive agriculture could be disastrous for the region's future.
"Two months ago Basin Governments agreed to develop a socio-economic test by Christmas to ensure communities are not worse off as a result of further water recovery, yet within weeks the Federal Government was inviting tenders for projects without any regard for their potential detrimental community impact," Ms Sheed said.
"To add insult to injury, the report says these projects aren't even subject to a standard cost-benefit analysis which means the recovery process could be more expensive than anticipated and may not actually be useful in achieving the environmental goals.”
She said a proper socio-economic test should apply to every drop of the 450GL.
