The Morrison government says the approval to begin construction of the Adani coal mine is great news for jobs, and has signalled work on reducing "green tape" for business.
Queensland's environment department on Thursday signed off on the company's plan to manage groundwater on and around its Galilee basin mine site.
It is the final approval the company needs to begin construction.
Employment Minister Michaelia Cash said that during her recent visits to Queensland the need to approve the mine was routinely raised with her.
"As people said to me, 'Michaelia, the way you spell jobs in Queensland is A.D.A.N.I'," she told Sky News on Thursday.
"It is a great win today for Queenslanders and for job creation in Queensland."
She said it also underlined the need to reform business and environmental regulation.
"We need to take a long, hard look at red and green tape in Australia," she said.
Greens leaders Richard Di Natale said the decision was deeply disappointing.
"This fight is far from over," he said in a statement.
"The Adani mine cannot go ahead if we are going to have any chance of slowing rising global greenhouse gas emissions and preventing the worst impacts of dangerous climate change."
Resources Minister Matt Canavan wrote on Twitter: "Things come to those who wait! #startadani"
Australian Associated Press