The Federal Government has announced new laws to ensure that any coal seam gas or large coal mine development which has "a significant impact on a water resource" must be assessed by the Commonwealth rather than just a State Government.

According to the Independent MP Tony Windsor the new laws have closed an "enormous gap" in the process.

Mr Windsor, along with farming and environment groups, has been calling for more federal intervention in relation to the controversial mining method.

Environmental groups, such as the Lock the Gate Alliance, have argued that the States have had too much of a vested interest in approving mines, which generate income to the States from royalties, to be the sole approval authorities.

The legislation to change the law is due to be introduced to parliament in the next two weeks.