The 3.6 billion Santos coal seam gas project has been approved by the new south wales independent planning commission.
The project is poised to construct 850 coal seam gas wells projected to supply half of new south wales gas supply.
A large number of concerns have been raised about potential ill effects the wells could have on the groundwater of nearby farmers.
The IPC has ensured that Santos would need to meet strict conditions in order to move into the construction and production phase.