Legal action has been launched over a giant water licence in the NT. 

The largest-ever groundwater licence issued in the Northern Territory will be scrutinised by the NT Supreme Court after native title holders at the Central Land Council (CLC) and an environment group, the Arid Lands Environment Centre (ALEC), served claims against the NT government and the proponent of the licence.

The groups filed papers for a judicial review of Fortune Agribusiness's 40,000-megalitre water licence at Singleton Station, an arid cattle property near Tennant Creek, 400 kilometres north of Alice Springs.

The CLC and the ALEC allege the government failed to follow its own Water Act when it approved the licence in April last year. 

The Environmental Defenders Office (EDO) has taken the case on for the Arid Lands Environment Centre, and will argue that Environment Minister Eva Lawler made a number of legal errors in approving the licence. 

It will be alleged that Ms Lawler failed to comply with a regional water allocation plan when approving the licence, applying another policy document in its place. 

The water allocation plan includes a requirement that the extraction not cause the water table to drop by more than 15 metres. 

However, Fortune Agribusiness’s plan allegedly said the project could reduce the water table by up to 50 metres in parts. 

The NT Government says it is developing a new, long-term Strategic Water Plan, but will not comment on a matter that is subject to legal dispute.