State Water says it can easily create room for inflows in the Murrumbidgee's main dams to avoid flooding.
The State Emergency Service says residents along the river are nervous at the high dam levels after recent floods.
State Water CEO Brett Tucker says operators are in close contact with forecasters and can make releases days in advance if there is a need for flood mitigation.
"It's something that we've got to constantly monitor, but the balance that we need to achieve is that the water is held in storage for the economic benefit of all of the regions that we're talking about," he said.
"So just to simply dump without known rainfall coming into replace it, could have quite significant consequences for people's rights and entitlements."
State Water has rejected a call to move water from Murrumbidgee dams into river weir pools to reduce the flood risk.
Murrumbidgee Shire Council says river levels are so high an emergency release from the dams would result in the shire flooding again, so it has asked for water to be transferred downstream.
But State Water CEO Brett Tucker says it is not a good idea.
"Shifting water out of storage and into the lower weir pools is about the worst thing we can do from a water security point of view," he said.
"The water is most secure in the highest parts of the catchment.
"You further increase river levels and potentially put at risk downstream communities through tributary inflows downstream of the dams.
"So look our operators take into account the whole system, not just the dams when making flood releases."
Mr Tucker says dam operations at Burrinjuck in March reduced the downstream flood peak by 21 per cent, and by 63 per cent below Blowering Dam.
Meanwhile, the snow melt is not tipped to affect Murrumbidgee river storage dams.
Mr Tucker says it has been a great ski season, but there's no worry about snow melt.
"The Murrumbidgee storages are largely rain fed so the snow pack is largely an issue for Snowy Hydro," he said.
"In the operation of the Snowy Scheme, since its inception they've never had to spill water, it's all gone through the turbines.
"So I'm sure it's something that Snowy Hydro are taking into account.
"Blowering is a bucket at the end of the Snowy Hydro system, we maintain airspace as well as some additional airspace for hydro operations."
Mr Tucker says the Snowy Hydro airspace in Blowering Dam this year is 100 gigalitres, double what it was in the 2010 flood.
© ABC 2012
16:06 EST The weather bureau has implemented a new system of forecasting the seasonal outlook called Predictive Ocean Atmosphere Model for Australia, or POAMA.