The state government has moved to ban Coal seam gas mining within two kilometres of homes in the Hunter and across the state.
The policy has been passed by state cabinet overnight.
It also means buffer zones will be introduced around Hunter Valley horse studs and vineyards which have been identified as critical industry clusters.
However, the restrictions will only apply to new projects, not CSG activities which have already been approved.
The Hunter Valley Protection Alliance is welcoming the announcement because CSG activities proposed near the region’s viticulture and equine industries have not received Development Application approval and are therefore included in the tough new restrictions.