The Albanese Government has launched a water ownership program for First Nations peoples in the Murray-Darling Basin, delivering on an election commitment.

Jamie and Ian Woods from Hay have been appointed to the interim governance body has been set up so that water entitlements can be purchased, before a permanent body is established. Both men are of the Nari Nari nation.

Under the Aboriginal Water Entitlements Program, the government has made $100 million available to buy water in the Basin, with First Nations representatives to determine how that money is spent.

The Senate has passed the Murray-Darling Basin Plan amendment bill following a deal made by the Albanese government and the Greens.

The bill passed on Thursday afternoon. It will now go back to the House of Representatives, where it is expected to pass.

The Federal environment and water minister, Tanya Plibersek, said that the deal includes a commitment - in law - that an extra 450GL of environmental water will be recovered by 2027.