Farmers are doing a lot to reduce agriculture's impact on water quality but "will have to do more", the Taoiseach has warned.
Micheál Martin said it is a priority of the government to secure a nitrates derogation "but to do so in a way that will enable Ireland to meet its obligations on water quality".
The Taoiseach told the Dáil that many farmers in derogation have "more sophisticated systems in place to try to monitor their water quality".
But he warned that Ireland now needs "to move in a direction that brings people with us but also enables us to comply with the various water quality frameworks and directives".
According to the Taoiseach, this has to be done in a way that "maintains a sustainable food production system, and dairy system in particular".
He also told the Dáil that he believes the nitrates derogation "is a critical element" of the economic sustainability of many farmers, many family farms, and the broader rural economy.
Micheál Martin highlighted that there has been "stakeholder engagement" between the government and various departments in Ireland in relation to the derogation.
He also said that the Irish government has been involved in ongoing discussions with President of the European Commission, Ursula von der Leyen and the EU Commissioner for the Environment, Jessika Roswall.
"Farmers are doing a lot to reduce agriculture's impact on water quality and will be doing more.
"They will have to do more in that regard.
"We are looking a more detailed programme to enable all this to happen," the Taoiseach added.
He stressed that while environmental sustainability is important in Ireland, it is not separate from economic sustainability.
"We are endeavouring to create a pathway to environmental sustainability in the context of food production that reflects economic sustainability as an imperative as well," Micheál Martin told TDs.