Environment Southland's proposed water take charge would target heavy water users so the funds raised can go back towards monitoring costs.
The concept was not warmly welcomed by the Gore District Council whose chief executive, Steve Parry, was reported as saying there was little compelling rationale for the move.
Gore councillor Nicky Davis described the concept as a "money-grabbing" idea.
Environment Southland has responded, saying those comments underscored the "pervasive misconception" many Southlanders had about access to water in a region where rain falls regularly in most areas.
Environment Southland chief executive Ciaran Keogh said access to water had been taken for granted in Southland despite the fact surface water and groundwater monitoring revealed a very different reality.
"The distribution of rain and surface water is uneven across the region and many of the aquifers are being drawn upon at a faster rate than they recharge."
Mr Keogh said regular monitoring and reporting on water supplies was needed and he believed the ongoing cost should be met by those who financially benefit from water use in the province.
Until now, those costs had been paid for in the general rate but Environment Southland, in its draft annual plan, proposes the introduction of a direct charge for those who take water out of the environment or modify the water before returning it.
"It's a move to shift more of the cost off the general ratepayer and on to the major users who benefit most from access to water," Mr Keogh said.
Environment Southland councillor Ali Timms said "large capture" water users were being asked to cover 40% of the cost of surface water monitoring and investigation and 80% of those costs as they related to groundwater takes.
Charges would not be imposed on non-consumptive users, such as power stations or those with "reasonable" needs for domestic use and stock drinking water.
