Prime Minister Julia Gillard and Treasurer Wayne Swan announced that Australian government will set up a science-based panel of experts to advise on and provide certainty for regional communities around coal seam gas and large coal mining developments and protection of water resources.

The announcement said that the government wants to ensure that all future decisions about coal seam gas projects and large coal mining developments are based on the most rigorous scientific evidence available.

In particular, the government will provide AUD 150 million to establish an Independent Expert Scientific Committee that will provide scientific advice to governments about relevant coal seam gas and large coal mining approvals where they have significant impacts on water.

The announcement comes as the debate about the government's Mineral Resource Rent Tax is about the begin in the House of Representatives.