THE South Australian Government is prepared to take further legal action to help the ailing River Murray if talks next year do not bring about a good result for the river and the state.

Environment Minister Jay Weatherill said the Government would not rule out claiming compensation from upstream states for damage caused in SA by overuse elsewhere, the Adelaide Advertiser reports.

The Government has launched a High Court challenge against Victoria over its cap on water trading.

"We don't want to lay out . . . our legal strategy but we have one and it will be taken if those discussions don't achieve what needs to be achieved for the health of the river," he said.

"There has been massive damage suffered because of the way in which this river has been depleted by upstream states. The idea of pursuing compensation for that remains a lively concern."

He was responding to the National Water Commission and Productivity Commission calls for the abolition of Victoria's out-of-area 4 per cent cap on water trading.

Read more at the Adelaide Advertiser online