The Natural Resource Commission's draft review of the 2012 Barwon-Darling Water Sharing Plan found it fails to protect the river, its dependent ecosystems and communities.

The Barwon-Darling stretches across the state's northwest connecting rivers, lakes and wetlands in the northern Murray-Darling Basin and provides a connection to the southern basin through the lower Darling River.

The draft report, published on Wednesday, suggests the significant upstream water extractions allowed under the plan pushed the river below Bourke into drought three years earlier than upstream parts of the river.

"The rules effectively prioritise upstream water users, resulting in impacts increasing further downstream," the report said.

"The Barwon-Darling is an ecosystem in crisis. Communities that live along the river are also under extreme stress."

The report argues basic landholder rights are negatively impacted by upstream extraction despite the requirement under the Water Management Act that these rights take priority.

"The plan does not provide adequate protection for the river and its dependent ecosystems or basic landholder rights," the report found.

The report recommended the plan, brought in by former NSW Nationals minister Katrina Hodgkinson, be subject to more regular independent review.

It also called for greater transparency and for the plan to be more adaptable to climate change.

The review was brought forward by then-NSW regional water minister Niall Blair after pressure over mass fish kills and water shortages last summer.

It recognises the NSW government has undergone significant reform since 2017 through improved metering, transparency and compliance but noted more is needed to improve water management.

The report makes 17 recommendations including that the water division of the NSW Department of Planning, Industry and Environment amend the plan immediately and completely re-make it in 2023 when it expires.

Further action should be taken to improve monitoring and compliance including allowing pumps to be switched off when the cease-to-pump limit has been reached, the report said.

A spokeswoman for NSW Water Minister Melinda Pavey said the state government will respond to the recommendations when the report is finalised in September.

"The government has embarked on significant water reform over the past 12 months as was recognised by the NRC in the report," she told AAP in a statement.

Australian Associated Press