The federal government has signed off on the first water resource plan for NSW as part of the Murray Darling Basin Plan, three years after it was due to be implemented.
NSW is responsible for 20 of the 33 basin water resource plans originally due to be in place in 2019.
The plans, developed by state governments, set rules about how much water can be taken from the system and diversion limits that ensure sustainability isn't breached.
The first of the 20 plans from NSW will set rules for water extraction in the state's northern border rivers region.
All other states involved in the Murray Darling Basin Plan have introduced accredited water resource plans.
Federal Water Minister Tanya Plibersek said the overdue plan was an important step forward.
"We've been waiting for NSW, who are responsible for the bulk of the water resource plans," she said,
"While today is a good outcome, there is more work to do. I look forward to considering the remaining 19 water resource plans once submitted and assessed."
The Murray Darling Basin Authority is assessing four more water resource plans from NSW.
NSW Water Minister Kevin Anderson said the state government was working with the authority to have the overdue plans submitted for approval by the end of the year.
"This is a positive step forward for the basin plan," he said.
"I am confident we will reach an outcome that benefits the environment and water users throughout the basin."
