A BYRRILL Creek resident has criticised a draft discussion paper identifying Byrrill Creek and the Oxley River as potential dam sites.

Jo Gardner said in most western countries dams were not being built, with government's looking for alternatives.

"The Oxley River site was canned by the Federal Government because it was going to flood Tyalgum village," Ms Gardner said.

"I don't see it as viable."

The two sites were part of 100 dam sites identified in a Coalition's draft discussion paper leaked to a Sydney newspaper.

The Federal Coalition taskforce Dams and Water Management Task Group prepared the paper.

Tweed Shire councillor Warren Polglase has been a long-time supporter of a dam at Byrrill Creek and welcomed the paper.

"Water storage is not just about water for homes but it's about water for irrigation," Cr Polglase said.

"They are big-dollar items that we couldn't build without the help of the state and federal governments."

Nature Conservation Council of NSW CEO Pepe Clarke said the draft plan was "costly ($30 billion), ill-conceived and environmentally irresponsible".

"New South Wales' rivers, wetlands and freshwater fish populations have been severely degraded by the construction of dams and over-extraction of water," he said

"For our towns and cities, water efficiency, demand management and recycling are less costly and environmentally harmful than new dams."