The report by the University of NSW found "highly significant inconsistencies" in the data the Chinese company submitted in the development's Environmental Impact Statement.

Caroona Coal Action Group, which commissioned the report, said in light of the findings, it would pressure the government to revoke the project's consent.

Ian Acworth, a hydrogeologist with 40 years' experience and a professor at UNSW, peer reviewed the paper.

He said Shenhua's modelling had vastly overestimated the amount of water stored in the different geological layers, with modelling that used physically impossible data.

"Every cube metre of ground has about three teaspoons of water," he said.

"A lot of the groundwater modelling has forgotten about that. Many are getting anywhere from a litre to 100 litres, a huge amount compared to three teaspoons."

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Dr Acworth said the overestimation would have serious impacts on the bores of nearby farmers.

"The predicted drawdown on farmers' bores is based on a storage value that is too high," he said.

"So in reality, when they start to pump, the impacts go much further because ground cannot yield the amount of water predicted - because it's physically impossible."

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The Leader asked Mr Acworth if the recent report should prompt a review of Shenhua's modelling.

"From a professional perspective, without a doubt - but from a political perspective, who can say?" he said.

Caroona Coal Action Group chairwoman Susan Lyle said reading the report had confirmed the community's worst fears, and validated their conviction that the planning process had been supplied with flawed data which seriously underestimated impacts.

"It is unacceptable that proper science seems to, again, be pushed aside during the political processes, leaving this region to bear unacceptable risks to our longevity," Mrs Lyle said.

"The planning process must take into consideration this latest research. This project has not received final approval and I call upon our governments at all levels to ensure these findings are incorporated into the decision-making process.

"Australia cannot afford to risk any water, anywhere."

Shenhua was approached for comment.