Councillors raised the issue at Thursday night's meeting at Kaniva after viewing the State Government's White Paper for Land and Biodiversity.

Cr Eveline van Breugel said the council was already battling against planning decisions made by the catchment management authority and she feared it would only get worse if the authority was given more power.

"We already have an issue here where a landowner has been given a grant to block a drain into Lake Wallace in Edenhope to create a wetland on his property," Cr van Breugel said.

"We had no say in this matter and it diverts water from the lake, which is very important to the community - the town is built around it."

Cr van Breugel said the white paper inferred organisations such as Wimmera Catchment Management Authority would have more power over planning than councils.

"At the moment we try to work together, but the white paper infers CMA can give directions, not just suggestions, and they will enforce them," she said.

"We would basically have to do as we were told. So people could collect grants to build wetlands on private property, diverting water and leaving Lake Wallace bone dry."

Cr van Breugel said the council would invite the authority to attend its next meeting to explain their position.

"We will ask Wimmera CMA to come and address us on these issues," she said.

"I would like to see if we can get on the same page and make sure Lake Wallace is a priority, not just the wetlands on private property."