The new legislation, Constitution Amendment (Water Accountability and Transparency) Bill 2020, was passed on the floor of the NSW Parliament's lower house this week.

NSW Water Minister Melinda Pavey claims it will improve public confidence in the state politicians' register of interests.

"The community rightfully expects Members of Parliament to be diligent and fully transparent when disclosing their pecuniary interests, but there is currently a lack of clarity around how valuable water assets should be recorded," Mrs Pavey said.

Ms Dalton said it was clear she had forced the government's hand.

"After nine years of allowing politicians and corporations to secretly own water, the NSW Government are finally doing something," she said.

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"Last year, I introduced a bill to force politicians to declare their water, as well as creating a register of all individuals and corporations who own water.

"The NSW Government delayed it until it expired."

"Perhaps their delays gave MPs the chance to sell their water, so they're now ready for some transparency,"

"On Monday, I tried to re-introduce my bill. The Government wouldn't let me, using COVID-19 restrictions to stop me from entering parliament,"

"On the same day, Minister Pavey tabled her bill".

The significant change in the minister's bill cuts the time MPs have to update their pecuniary interests.

"The proposed legislation will require all members to record water ownership and share components as an asset, in the same way they must declare business or real estate interests - this includes a delivery right within an irrigation corporation," Mrs Pavey said.

"The legislation will also require any water trades to be declared within 14 days, rather than the current six months, along with any money earned and the net impact on remaining water holdings.

"Any further changes to registers involving private citizens must be done in a way that promotes transparency whilst protecting the privacy of our farmers."

However, Mrs Dalton said it was weaker than her legislation, as it didn't consider entitlements, or trades had already been completed by MPs.

"Does the bill cover retrospective water ownership? Does it cover the spouses of politicians? I'm betting it probably doesn't," she said.

"The Bill's title suggests it does nothing about foreign or domestic companies that own water.

"We need a register for them too. They donate to political parties. If they own water, the public have a right to know.

"Why are the Nationals still protecting them?"

Mrs Pavey's bill will now progress to the state parliament's upper house for another vote. The upper house is also considering Mrs Dalton's original bill which was re-introduced by Shooters, Fishers and Farmers Party MLC Mark Banasiak.