WATER hungry rural tax schemes have added to the impact of drought, bleeding the Murray-Darling basin dry.
They have contributed to the ''gutting'' the livelihoods of more than 1.3 million people, South Australian Senator Nick Xenophon says.
New research by the Australian National University and James Cook University, he says, shows the basin has lost 200 cubic kilometres of water over the past six years - the equivalent of 400 Sydney Harbours.
Only 6 per cent of total water loss is from surface water, with 50pc from groundwater and the rest from soil moisture.
Senator Xenophon has urged the Rudd Government to ''rev up'' the pace of national water reform.
It should use federal constitutional powers to take control of the basin's rivers from the states.