A coal mine has been approved with conditions imposed to address fears the project would send salty mine discharge water into Sydney's catchment area.
The Springvale coal mine extension, near Lithgow west of Sydney, has received final approval from the independent Planning Assessment Commission (PAC).
It will add 13 years to the life of the mine, which had exhausted its coal supplies.
Mine owner Centennial Coal has stood down 230 workers while waiting for the approval.
The PAC had recommended approval of the extension in June despite concerns from the NSW Environment Protection Authority about the impact of mine water carrying 7500 to 13,000 tonnes of salt being discharged into the Coxs River each year.
The river ultimately feeds into Sydney's main water supply, Warragamba Dam.
Planning Minister Rob Stokes ordered a second PAC review in August following a change to state planning laws and the commission gave its final approval on Tuesday.
In a statement the PAC said it was "satisfied that the projects benefits outweigh its potential impacts".
It recommended conditions that include Centennial consider transferring mine water for use in the Mt Piper power station, which takes coal from the mine.
Conditions were also recommended for monitoring sensitive swamps that will be undercut by the mine.
A Centennial Coal spokeswoman said the company was hoping to secure federal government approval in October, allowing the stood-down miners to return to work.
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