Upper Hunter MP George Souris said the Coalition was still waiting to see if the State Government approved the Tillegra dam.

"A planning decision is expected on the DA in April, under Part 3A," he said.

"If we reach 2011 and there's no decision or contracts signed, we will consider our position and announce that before the election in March."

But Mr Souris said a coalition government would not axe the project if it meant paying hundreds of millions of dollars in compensation to private contractors.

"If binding contracts have been signed and they are compensatory then there's unlikely to be further policy," he said.

"We are not about to pay $500 million to not have a dam."

The Hunter Business Chamber came out strongly in support of building the dam yesterday, saying industry and residents needed assured water supplies.

"Another Hunter Water report shows that we need to boost our water supplies and Tillegra dam is the stand-out option," chamber president Brett Derwin said.

"It also shows that impacts, inevitable with any significant piece of infrastructure, can be minimised."

Spokeswoman for the No Tillegra Dam group Sally Corbett said Mr Souris, Liberal MLC Robyn Parker and Liberal MP Craig Baumann had all made speeches in parliament criticising the dam.

Greens MLC John Kaye said it was time for the Opposition to state its position clearly.

"It is outrageous for them to sit on the fence and refuse to take a position on an ongoing issue in the Hunter," he said.

"They have allowed the community to believe they are opposed to the dam but when the chips are down they run away.

"The citizens of the Hunter are looking for leadership."