The NSW water regulator is prosecuting a Kempsey region irrigator and agricultural company over alleged offences near the Clybucca wetlands.
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The case against individual Xiuming Lin and company Green Leaf Australia Group Pty Ltd, was listed for mention in Kempsey Local Court on April 6, before Magistrate Scott Nash.
No plea was entered.
The Natural Resources Access Regulator (NRAR) alleges the company undertook water supply work without work approval and carried out controlled activity without activity approval, between December 2017 and February 2021.
This included a period of very dry conditions.
Lin and Green Leaf Australia are each facing two counts of building dams without approval, four counts of using dams without approval and six counts relating to illegal excavations on waterfront land.
The alleged illegal dams have the combined capacity to hold approximately 165 megalitres of water, which is equivalent to 66 Olympic-sized swimming pools.
The Clybucca estuary is near the property and makes up a large network of reserved land. It contains nationally significant wetlands and Aboriginal cultural heritage.
The NRAR says the matter came to their attention through an anonymous tip-off from a member of the public.
NRAR Director Investigation and Enforcement Lisa Stockley, said illegal building and use of dams for commercial irrigated agriculture could negatively impact the community.
"On top of that, the carrying out of illegal excavations (controlled activities) on waterfront land at this location also had the potential to cause environmental harm to wetlands near the property," she said.
"Healthy watercourse and waterfront land are vital to the community and environment, so landholders need to get approval before they do any work.
"The rules are there to prevent activities that could alter water flow or quality, destabilise beds or banks of waterways, cause erosion, disturb wildlife habits and other damage."
Ms Stockley said irrigated agriculture often included the largest water users within a particular region and NRAR would continue to focus on compliance in this area.
"We are particularly focusing on the Hunter, Murrumbidgee, Murray and Far North Coast areas of the state," she said.
About 60 per cent of water taken in NSW is used by irrigated agriculture.
The industry's water entitlement in NSW is worth about $29 billion and produces around $3-4 billion annually.
The matter has been adjourned until Thursday, June 1.
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