The sale of Snowy Hydro Ltd is again on the agenda after the release of an Infrastructure NSW report last week.
The report recommended that the government investigates "an implementation strategy" for privatising "distribution networks".
In August, the NSW Government said there were no plans to sell Snowy Hydro.
Snowy River Alliance spokeswoman Louise Crisp said the alliance had "really serious concerns about the licence being in private hands". "It would be short-term gain for long-term pain," she said.
She said the water controlled by Snowy Hydro should be kept in public hands. "It would essentially be the privatisation of water," she said. Ms Crisp said if Snowy Hydro were privatised there would be no guarantee of environmental flows.
Meanwhile, the Murray River will again missed out on extra environmental flows this year.
A NSW Office of Water spokeswoman said there has been no "call out" this year for water to be released into the Murray before last week's deadline.
She said "conditions over the preceding two years had been very wet, and there was expected to be sufficient water available in the (currently full) Murray storages to meet forseeable environmental requirements this year".
Ms Crisp said since 2002 when the NSW, Victorian and federal governments committed to providing the Murray with 70GL a year, only 38GL had been released.