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In adjacent Crockett county, fracking accounts for up to 25% of water use, according to the groundwater conservation district.
There are also concerns over the amount of groundwater it will use.
But opponents of the mine claim Hunt's approval fails to protect the region's groundwater and may be challenged in the courts.
In the harder rock sections, the tunnel will likely be intact albeit completely inundated with groundwater.
It will be the next step in a battle between the company and the surrounding farmers who say the 268m tonne coal mine on the ridge above the Liverpool Plains in NSW could contaminate prime agricultural land and the groundwater below it.
"We want the government to be provided with the best information to make the right decision and it's clear the proponents haven't done their homework, on groundwater and how they will mitigate the impact on climate change.
There are farms that use groundwater and there has been a lot of work to adjust the groundwater to make sure it is sustainable for long term.
The approval comes with 49 conditions attached, including the acquisition by Waratah Coal of 10,000 hectares of land to offset environmental damage it will do with the project and a water plan to address the impact on groundwater in the area.
Not all India's groundwater is potable anyway; in places, it is getting seriously polluted.
Nearly a third of India's groundwater blocks were defined in 2004 as "critical, semi-critical or over-exploited".
And India's groundwater reserves will be especially missed when climate change makes surface-water sources even more sporadic.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com