Senators from New South Wales and Victoria have threatened to walk away from the Murray-Darling Basin Plan, after an amendment to include more water for farmers was voted down.

The Basin Plan, which was initiated by the Gillard government in 2012, aims to govern the distribution of water between farmland and, importantly, the environment throughout the Murray-Darling river system, which includes 27 rivers over four states.

Without the cooperation of all New South Wales and Victoria, the plan is unable to move forward.