Water Minister Rose Jackson wants councils and other dam owners to pay for and manage the safety of their dams, a cost currently borne by the government funded body, Dams Safety NSW.

The independent body regulates dams around the state, ensuring their safety for the community and environment.

A similar move to impose a levy on dam owners was rejected by former water minister Melinda Pavey three years ago. Now the government has renewed efforts to introduce the levy.

Beardy Waters, Chaffey, Copeton, Inverell, Malpas, Pindari and Tenterfield dams are some of the state's 381 dams that are in the government's sights.

Ms Jackson has tasked the Independent Pricing and Regulatory Tribunal, IPART, to recommend a way of recovering costs of monitoring dam safety from declared dam owners.

These include local councils, corporations and mining operators.

The tribunal is due to publish a draft report on its findings in June and hold public meetings in July, before delivering its final report in September.

But Northern Tablelands councils are fighting back, claiming the proposed levy is another example of "cost shifting" by the State Government.

Their cause has been taken up by Northern Tablelands MP Adam Marshall. Later this week, he will convene a meeting with the region's mayors and general managers and Shadow Minister for Water Steph Cooke, to see how they can fight the latest impost.

"If this proposal were to be adopted, it would be a double blow to regional councils as they are the only ones which will be impacted by this change and they already pay fees to Dams Safety NSW when local storages are inspected and upgrades required," Mr Marshall said.

"This would be state government double dipping to have councils pay for what is legislated as a state government service and responsibility.

"Local ratepayers should not have to subsidise a state government agency, which in turn places regulation and costs on their local councils."

Tenterfield Mayor Bronwyn Petrie said if implemented, the levy would be a burden borne directly by ratepayers.

"We're already suffering from cost shifting on all sorts of services, we don't need this," Mayor Petrie said.

"In the case of small, rural councils there's limited recourse to recover these increased costs."

Inverell Shire Council is the owner of one declared dam, Lake Inverell and is also opposed to the planned levy.

"Monitoring and regulation of declared dams is something the state government should continue funding, as it does with policing or public health, and not cost-shift on to others," water services manager Keith Hyatt said.

Tribunal member Jonathan Coppel said a focus of the review was making sure the levy was fair and efficient.

"It's important that stakeholders have their say now, so we can consider all the issues," he said.

Local Government NSW will be lodging a submission on behalf of all affected local councils, including those on the Northern Tablelands.