"This group will have its work cut out to allay a multitude of concerns," Hoggard said.
Top of the list for Federated Farmers were issues around governance and accountability and Hoggard said the complexity of rural water scheme ownership and operations had rural people worried.
"How will the new entities ensure the needs of smaller and rural communities are not crowded out when setting investment priorities and plans?
"The proposed arms-length governance arrangements with directors appointed by panel, which are in turn appointed by yet another panel, weaken the accountability of water service entities to communities."
Feds also had serious questions about the robustness of the government's estimates of savings and benefits from moving to the new arrangements.
The select committee process, and the public consultation that Minister Mahuta has promised, needs to be rigorous, Hoggard said.
"Federated Farmers has already said this is cart before the horse stuff.
"We're also in the middle of resource management reform and examination of the future of local government.
"The government has yet to convincingly demonstrate adequate planning and thought has gone into how the water services reforms integrate with these two very significant processes."