Feds crack on with Murray-Darling inquiry

A federal inquiry into water-sharing arrangements is gathering steam despite pushback from several states.

The Morrison government is pushing on with the probe despite the southern Murray-Darling Basin states baulking at the investigation to be led by interim Basin Inspector-General Mick Keelty.

South Australia and Victoria have refused to support the former Australian Federal Police commissioner's inquiry.

However, the government has released the terms of reference and list of locations for town hall meetings.

Mr Keelty will hold a series of public hearings in basin towns from mid-January.

Late last week, federal Water Minister David Littleproud said states should support the inquiry.

"If you have nothing to hide, let's dance," he said.

Mr Littleproud agreed to the inquiry after meeting with angry drought-stricken farmers who descended on federal parliament in a convoy earlier in the month.

Mr Keelty has been tasked with looking at whether more water can be found to support drought-stricken communities.

He said refusal from states to support the investigation would make it more difficult.

"If we get to a point where we're unable to find the facts, then I'll simply shine a light on that and call it out."