Council has clashed with the Department of Planning, Industry and Environment over one clause of a draft agreement the two parties are working on to solve the lake's water issues.

The agreement was meant to be sent to NSW Water Minister Melinda Pavey by the end of February but has been stalled at least until the end of this week.

General manager Peter Thompson said he wouldn't back down on the contested clause but was hopeful council and the DPIE could find a resolution.

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"It did come up in the meeting that we first had [with Ms Pavey in February] that it was probably the main contentious point there. I thought we'd reached a common ground," he said.

"I have every belief that we'll be able to get [the agreement] to the minister in the not too distant future."

He said DPIE lawyers had asked that the clause in question remain confidential and wouldn't reveal it when asked yesterday.

Council's preferred solution would see Wagga receive an annual credit for the 5000 megalitres of treated effluent it returns to the Murrumbidgee and use that credit to pump an additional 2000 megalitres of water into Lake Albert when required.

The Daily Advertiser sent questions to the DPIE and to Ms Pavey's office.

A DPIE spokeswoman said: "The Department is negotiating an agreement in good faith. Advice, with a draft agreement, will be provided to the Minister by the end of the week. Any areas of contention will be highlighted for the minister's consideration."