DAIRY farmers have vowed to continue their opposition to the proposed Dairy Shed Water Licence Transition Program despite the application deadline fast approaching.

The program, which aims to ensure water used in each dairy is licensed to help resolve future water-security problems, has come under fire from farmers in Gippsland and the Western District.

They claim they should not have to pay for the right to use water in their dairy that falls on their own property and into dams they have paid to construct.

The United Dairyfarmers of Victoria has backed the call and has written to the Water Minister Tim Holding asking for an exemption for farm dams.

UDV president Chris Griffin said he didn't want farm dams included in the program.

"They (farmers) pay for all the infrastructure at their own cost and there is no real administration on the monitoring of the water for those dams," he said.

Last October, the UDV wrote to the Minister requesting that dairy farmers not be charged to register their dams and that the annual fees on dams under the Dairy Shed Water Licence Transition Program be waived.

Last week Mr Griffin said he was still awaiting a reply.

A spokeswoman for the Water Minister Tim Holding said a reply was being drafted.

"The Dairy Shed Water Licence Transition Program aims to ensure water used in dairy sheds is fully licensed," she said.

"It was developed because many dairies are using substantially more water than they are licensed to use.

"The program involves an amnesty period, which ends on 26 February, 2010, during which dairy farm owner operators must make sure the total amount of water used in the dairy shed is licensed."

Meanwhile, farmers continue their fight with many vowing to take their opposition to Department of Sustainability and Environment meetings this week.

Cooriemungle dairy farmer Alex McKenzie, who heads a local group opposing the program, said dairy farmers wanted answers from the DSE.

"We certainly will not be signing anything from anybody until we get some answers," he said.

"(Licensing) a creek and a bore is different to what falls on your land ... how can they justify ownership of this water?"

Mountain View dairy farmer Alison Drew said every dairy farmer she had spoken to in her region opposed the program.

"If their (DSE) concern is healthy river flows they need to address other issues before putting another fee on dairy farmers," she said.

"What we need is a Parliamentary inquiry not another account in our letter box."

Southern Rural Water field operations and compliance manager, Chris Hughes, said the legislation was nothing new.

Meetings across Gippsland this week would help dairy farmers clarify questions about applying or altering their licences, he said.

He also encouraged farmers to phone their water corporations or the DSE if they could not attend any of the meetings and had questions.

Dairy farmers could risk penalties if the water they use in their dairies is not appropriately licensed by the end of the application amnesty on February 26.