Water holders who took up the option to sell entitlements as part of the federal Government's Bridging the Gap voluntary water buybacks between March and May last year have been named publicly on the tenders.gov.au website.
While it is whole-of-government procurement rules to name sellers, the information provided could cause issues within basin communities, according to a peak body.
The website provides the seller name and how much the entitlement was sold for, but lacks pertinent information such as how much water was sold, from which catchment valley it was sold, type of water purchased and price per megalitre is missing.
In a letter to federal Minister for Water Tanya Plibersek, NSW Irrigators' Council said it was "deeply troubled by the Government's decision to publish the names and locations of Bridging the Gap water sellers on the AusTender website".
"We understand the need for transparency in Government operations, but this particular disclosure will only amplify the distress and distrust within already volatile communities worried about what the Government's new Murray-Darling Basin means for their future," the letter stated.
"Through our grassroots members and experience from past buybacks rounds, we know that individuals and companies who sell water to the Government are perceived locally as selling out their communities.
"Publishing the names of those who have sold water only serves to exacerbate local tension and suspicion."
NSW Irrigators also questioned why important information was missing from the website.
"Given the significant expense associated with water buybacks and the Government's history of distorting the water market by paying more than market prices, it is imperative that taxpayers know precisely what the $55.5 million contracted so far has accomplished in terms of water recovery," the letter stated.
"Purchasing supplementary licences at top dollar, for example, will not improve river connectivity and health when it matters most, during dry periods and droughts.
"We strongly urge the Commonwealth to reconsider the current practice of naming and locating sellers and, instead, focus on providing comprehensive information by which it can be held accountable for its expenditure."
A Department of Climate Change, Energy, the Environment and Water spokesperson said publishing the names of sellers was consistent with other contracts.
"It is a requirement. Consistent with normal whole of government AusTender practice, and to ensure transparency, the department is required to publish successful tender details on AusTender after contracts between the Australian Government and tenderers are signed," the spokesperson said.
The department said tenderers were advised of the publication requirements.
It also said it will provide information involving volumes recovered in each catchment following the conclusion of the tender process which is when all contracts have been signed.
