AMID claims of an "underhanded approach by government" on water levies in the Western Mount Lofty Ranges, a meeting with Member for Bragg and Opposition deputy leader Vickie Chapman at Uraidla on Monday night proposed a "sensible resolution" to the problem.
Ms Chapman said she will ask the government for an amnesty on the payment of bills by water license holders and a suspension of annual payments where an allocation is not being used.
"Two hundred people attended the meeting and there were a cross-section of concerns raised," she said.
"Some of these concerns can't be remedied but we are trying to propose a sensible resolution.
"We are calling on the government to provide an amnesty until it has identified how the funds will be applied and for the money to be quarantined against use for other purposes like propping up the government budget in other departments.
"Bills are due at the end of this month and are paid in advance for an allocation, not on usage, which is inconsistent with conservation of water."
Ms Chapman said license holders should not be required to pay for their allocation if they are not going to use it at all in a particular financial year.
"The government wants licenses to be given back if they are not being used but holders should be able to retain it," she said.
"They can declare they are not using the allocation for that year and a penalty would be imposed if they do.
"There are older farmers, particularly in dairy, where the milk price has gone through the floor, who want to keep their allocation in case they want to produce something else."
Ms Chapman said the government had indicated in the budget it was taking a considerable amount of the total levy for infrastructure works on the Patawalonga and to "claw back costs of planning".
"This totals $24 million over the next three years," she said.
"I asked the government why they are doing this and they said it is not coming out of the water levy but out of the general levy - but it is still unacceptable.
"We know the government is strapped for cash but it is no excuse for raiding levy funds that are supposed to be there for NRM.
"The NRM board says they didn't recommend it and were given a Ministerial direction to give the money to the department. The result is less money for water management, pest control and bushfire management."
Presiding member of the Adelaide and Mount Lofty Ranges NRM Board Chris Daniels said an undertaking had been given to local farmers and the Natural Resources Committee of Parliament that no money from the water levy would be used to finance work on the Patawalonga system.
He said as a result of the state budget, the NRM board would be required to pay for the operations and maintenance of the Patawalonga system but the board had not decided how this cost would be met.