WATER NSW has cancelled its plan to increase water releases from Menindee Lakes after on-ground data showed that Menindee homes could be flooded.

Water releases from Menindee Lakes, which was at 92 per cent of its 2000-gigalitre capacity this week, were scheduled to increase from 18GL a day to 21GL a day.

Inflows to the lakes from the Barwon-Darling river system in the north are expected to rea...