A consultation group has been created to liaise between Centennial Coal and local communities for its Inglenook project.
According the ABC, the Inglenook Community Liaison Committee has held its first meeting to ensure clear communication between the coal miner and the community, chairwoman Margaret McDonald-Hill said.
"One of the main areas of interest was what the water census had revealed," she said.
"There is concern for mining or what mining may bring across the state.
"I think the former government recognised that."
Centennial have stated that “consultation with all project stakeholders is a priority”, and that it is committed to “establishing and maintaining open and honest two-way communication with the stakeholders”.
McDonald-Hill reiterated the importance of the mine on local water supplies, saying “it is a very important issue.”
Centennial has previously stated that is planning to undertake a hydrology study in the area which will identify the nature of the local surface and groundwater sources that occur within the study area.
It will also undertake environmental studies including characterisation of aquifers.
The Inglenook project runs over the area known as Ilford, Cameron Road and Melrose and is near Centennial’s existing Airly coal mine and the Chabon open cut pit in New South Wales’ Western Coalfields.