Member for Murray Helen Dalton has this week introduced a bill into NSW Parliament in a bid to "have some transparency" around who owns water entitlements.

At the same time, federal Minister for the Environment Sussan Ley has argued during a radio interview that only people who have a "connection to farming" should be allowed to own water in the Murray-Darling Basin.

Mrs Dalton has also expressed concern that parliamentarians - who are making decisions about water - do not have to declare any entitlements on the pecuniary interests register.

"I believe the first step in fixing our water problems is to have some transparency on who owns it," she said.

"Applying for a water licence is currently easier than opening a bank account."

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Mrs Dalton said her bill was aimed at making NSW politicians declare their water interests on our conflict of interest form, changing the online water register to allow people to search for water holdings of people and companies, and changing the application process for getting a water licence so people can't "hide their identity".

Ms Ley, the Member for Farrer, told a Sydney radio station that the 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.

In August, the Australian Competition and Consumer Commission announced a study into the Murray-Darling Basin's $2 billion water market.