Victoria has further delayed reform in the Murray-Darling River system after a bill to refer state powers to the Commonwealth was stalled for weeks of extra scrutiny.
The decision by non-Government parties in the Victorian upper house to send the bill to a review committee prompted Federal Water Minister Penny Wong to warn that the Senate may not be able to approve the Commonwealth's Murray-Darling legislation until 2009.
Victoria is the only remaining state or territory in the Murray Darling Basin yet to have referred its powers, and the delay adds to Victoria's reputation as being the most obstinate basin state in the past two years of protracted negotiations.
Tensions between the Victorian and Commonwealth governments threaten to boil over on Friday when water ministers from around the basin meet Ms Wong in Canberra.
Members of the Victorian Greens, Liberals, Nationals and lone DLP member Peter Kavanagh refused to approve the Brumby Government's referral of powers bill this week, opting instead to send it to the upper house's legislation committee.
The move means the bill will be subject to clause-by-clause review until at least December 2, angering Ms Wong and Victorian Water Minister Tim Holding.