Earlier this month, Mr Windsor introduced a private members' bill that bans "mining action that has, will have or is likely to have a significant impact on the water quality, structural integrity or the hydraulic balance of a water resource".

Any activity that threatens a water resource would trigger the Environmental Protection Biodiversity and Conservation Act and commonwealth intervention.

It also prevent any companies with exploration licences transitioning to full commercial approval until the bill is voted on.

Association president Fiona Simson said the proposed legislation reflected community concern about the mining and coal seam gas industries.

"Communities across the state have begun questioning the impact this new and relatively unchecked industry is having on water used by farmers and communities," Mrs Simson said.

"The federal government can play an important role is assessing the new mining and coal seam gas applications, and the precautionary approach taken in Mr Windsor's bill is warranted, given so little is known about coal seam gas in Australia."

Mr Windsor said state laws had not kept up with the issues new mining and coal seam gas developments pose, leading to conflict between companies and communities.

"There is a need for a nationally consistent standard that protects Australia's limited water resources, while at the same time providing certainty for gas and coal companies," he said.