TAMWORTH MP Kevin Anderson believes the region is "ahead of the game" when it comes to koala preservation.
The construction of the proposed Gunnedah koala park is among the ways Mr Anderson said the government was supporting the species in the region.
"We're well ahead of what I think the community anticipates," Mr Anderson said.
"That's why we have given $7 million to Gunnedah Shire Council to build a koala park.
"I am totally aware of the fact we need to look after our environment, we need to stop clearing trees, we need to be able to provide something for our habitat and I think the $7 million is testament to fact we are acutely aware of what has to happen.
"I think $7 million is a good start, so let's see how it progresses and what it looks like."
Mr Anderson's comments came after the NSW Upper House inquiry into the state's koala populations and their habitat was handed down on Tuesday.
The inquiry, chaired by Greens MP Cate Faehrmann contained 42 recommendations to help save the species from potential extinction.
"Without urgent government intervention, the koala will become extinct in NSW before 2050," Ms Faehrmann said on Tuesday.
"This is an extremely significant report with strong recommendations that pull no punches, but it's important that this report pulls no punches because the government has to hear what is necessary to protect koalas ... this here is the road map."
The inquiry also found the state government's koala strategy failed to protect and stabilise populations across the state, and recommended the Shenhau Watermark project be prevented from proceeding.
The company recently narrowly avoided enacting a cancellation clause by filing for an extension of its mining licence.
"This project has been kicking around for 11 or 12 years and they were always going to get to a deadline and they did what they did," Mr Anderson said.
"My focus has been water and if the scientists come back saying there's a threat to water then that project needs to be reassessed.
"It will be reassessed as part of the process going forward."