In February, the New South Wales Planning and Assessment Commission approved more than 300 gas wells for the valley.
The Barrington Gloucester Stroud Preservation Alliance says it has mounted a landmark case.
Chairman Graham Healy says the court will decide whether the Planning Commission adequately considered four major environmental questions before granting approval.
"The risk to surface and groundwater quality and quantity when the wells are drilled and the coal seam's fracked," he said.
"The lack of data about groundwater impacts given the highly fractured geological structure of our valley here.
"Uncertainty about the disposal of polluted waste water produced during the process and uncertainty about the nature and impacts of the chemicals used in the fracking process."
Mr Healy says the Environmental Defenders Office and his members are quietly confident of the outcome.
"They believe we have a strong case and the other thing that is of interest in the case is that it is an important test case," he said.
"We think it will be a landmark case around Australia for the rollout of coal seam gas projects.
"We expect a large number of people to attend the hearings from communities up and down the eastern seaboard, because they're next."
1233 ABC Newcastle
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