One has to wonder what planet the Gillard Government has been on if it didn't believe the Murray Darling Basin guide would cause stress and anxiety to regional communities.

The Nationals Senator for New South Wales John Williams says it has taken the government a week to step in and announce an inquiry into the impacts of proposed water cuts on the communities that exist because of the Murray Darling Basin.

Senator Williams said the Guide is friendless, yet people have had to close up businesses and protest at community consultation meetings before this out-of-touch government reacted.

"There are giant holes in this report and people could see their futures dwindling away. Banks, rural firms, business groups and the farming community have all pointed to the detrimental effect the proposed 27 to 37 percent water cuts would have.

Water Minister Tony Burke tried to quell the concern by saying there is a lot of work to be done. Minister, why wasn't this work done before the Guide was released so communities could have more faith in the report?

Now the Government has called in the Labor-aligned Independent Tony Windsor to head a committee to rescue it.

I believe the extent of protests has taken the Government by surprise and the inquiry into the impact on communities in the Basin is a panicked one, but a welcome one", Senator Williams said.