According to ABC, Margaret Pontifex recently received a letter from a Riverina-based water broker, seeking to buy a 10 megalitre water entitlement on behalf of the Baiada Chicken company.

Mrs Pontifex says she was shocked by the request, and is worried about the future of the region's water resources.

"One is that they're planning to expand dramatically," she said.

"The other concern is, it's probably a farm, which many of the chicken farms up here reportedly don't actually have a licence for the volumes of water they use.

"So they're trying any way they can to get a hold of a licence before the Government started sending out fines."

Baiada has declined to comment.