Newly-elected Upper Hunter Shire Council mayor Lee Watts says the Upper Hunter is ‘‘not open for business’’ – for coalmining or gas extraction – without stronger protection of water, the equine industry and prime agricultural land.

The council endorsed a policy on Monday night that makes most of the shire an ‘‘exclusion zone’’, keeping future mining and coal seam gas extraction away from horse studs.

‘‘We have worked very hard to get a clean, green branding and we want to keep it,’’ Cr Watts said.

She conceded the council would not be the consent authority for mining or coal seam gas developments that may occur but the community wanted leadership on the issue.

The endorsed policy will be put to the NSW government as part of future strategic land-use planning.

The council wants strengthened regulation and monitoring of the industries, cumulative impact assessments, the establishment of an independent authority to manage all aspects of coal and coal seam gas and social impact statements for all exploration and production licence applications.

The policy ultimately would become part of the council’s planning instruments, environmental services director Murray James said.

Hunter Thoroughbred Breeders Association president Wayne Bedggood said the council’s move gave the industry confidence in the future.

Only one councillor did not vote in favour of the policy.

Deputy mayor Errol Bates declared an interest and left the chamber.

Cr Bates has coal seam gas exploration wells on his property, near Bunnan.

Mr James said AGL and Santos were exploring in the local government area.

AGL said it would review the motion in detail.

Santos had not replied last night to the Newcastle Herald’s request for comment.