Farmers reliant on the South-East Irrigation Scheme have seen their water halved as the result of supply issues.
Primary Industries Minister Guy Barnett said he had been advised, due to operational issues coupled with exceptionally dry conditions, TasWater's supplies to irrigators have been restricted while maintaining drinking water supplies.
"These issues have meant that Tasmanian Irrigation has recently implemented partial supply restrictions to Stage 2 and Stage 3 irrigators," Mr Barnett said.
"I can assure farmers in the South-East region that Tasmanian Irrigation is working with TasWater to investigate options to supplement water and to stabalise dam levels to alleviate the current water supply issues."
In Parliament question time, Labor leader Rebecca White questioned if the minister was doing enough to support affected farmers.
"Without a guaranteed water supply significant agriculture investment worth hundreds of millions of dollars and hundreds of jobs are at risk," Ms White said.
Mr Barnett said the problem was being considered as a priority issue.
"I'm very aware of the impact these restrictions have on our farmers and the crops and the jobs that flow from that," he said.