COAL seam gas giant WestSide Corporation has set its sights on the North West.
Four exploration wells will be drilled at cattle stations in the Flinders and Richmond shires in two tenements of the Galilee Basin.
The 14,000-square-kilometre area is believed to contain 21 trillion cubic feet of gas.
The company is a major player in the CSG industry in Moura and the Surat basin.
Flinders Mayor Brendan McNamara said he supported the development but not at the expense of the health of the Great Artesian Basin.
"The Great Artesian Basin not only supplies properties with water but it does town water here as well," he said.
Councillor McNamara said graziers in his shire were concerned about the effects the development could have on their water supply and the health of their land.
"The main concern is what will happen to the basin and the land in the very long term," he said.
Cr McNamara said the issue was in the hands of the council.
"We in the council can't stop them if they have approval from the State Government," he said.
State Member for Mount Isa Betty Kiernan said she had held meetings with WestSide executives.
She said they had discussed at length the impact the project may have on the region's water supply.
"I know right along the corridor graziers are concerned because that's their lifeblood, the Artesian Basin," she said.
Mrs Kiernan said she had confidence in the State Government regulations to mitigate environmental damage.
"There is a requirement and an obligation on these companies to act responsibly," she said.
"I can absolutely guarantee this is going to be stringently monitored."
The CSG industry in the North West had the opportunity to learn from mistakes made at developments in the southern parts of the state, Mrs Kiernan said.
"We're coming online in the North West a little later than our southern counterparts and they've been ironing out a lot of the problems," she said.
WestSide chief executive officer Julie Beeby said the company would make every effort to ensure the health of the water table.
"We're going to be drilling and casing off, and cementing off the water table so it doesn't communicate with what we're doing," she said.
Drilling has begun at Glenlyon Station and will commence at three other sights shortly.