Cattle owners have been told to keep their water heater at least 24 hours a day, and that the boiler must be replaced every two years.
But the new rules mean some are worried about their property values, as they will be able to access a discount on water from the city.
Some farmers have been taking their cattle to the City of Sydney, which has introduced a discount scheme.
The discount is for people who live in NSW’s north, but it is being extended to other parts of the state.
The price will be lower for the residents of regional areas, and the discounts will be available for those who live further west.
The scheme will be open for a month, starting on November 6.
Cattle owners can now access the discount through a special website and can also access a 50 per cent discount on electricity, gas and water bills.
Some people are concerned about the impact of the scheme on their cattle and property values.
“This is a huge benefit to farmers and they can now save on water, so it’s very good news for them,” farmer and co-owner of the Dennyville farm, Tom Smith, told ABC Rural.
He says that if he had the choice, he would not have the water heater because he had been using it to heat his barn.
Mr Smith said that he was worried about what would happen to his farm if the city started offering a discount.
A spokesperson for the NSW Rural Utilities Authority said the city had a number of options for customers, including charging a fixed rate or reducing water charges.
“The city offers a range of services for all households including energy rebates, electricity and water,” the spokesperson said.
“[The scheme] provides a discount for people in rural areas and also reduces water charges.”