Muswellbrook Shire Council has endorsed an economic diversification project, co-ordinated with five other councils in and bordering the Upper Hunter region, that helps plan for post-mining prosperity.

The other councils involved are Singleton, Upper Hunter, Dungog, Gloucester and Great Lakes.

Muswellbrook mayor Martin Rush said there was high demand in the region for affordable housing, water and health services.

‘‘The problem has been caused by significant lack of planning as to the effect of the their [state government’s] approvals in the local market,’’ Cr Rush said.

‘‘Not every consideration was given to overheating.’’

Other recommendations in the plan include diversification of agriculture, rehabilitation of mine sites and the development of a ‘‘royalties for regions’’ scheme, similar to that established elsewhere in Australia to benefit communities in resource-rich areas.

‘‘We say $28million a year should come to the Upper Hunter because the Upper Hunter generates 70per cent of the resources covered by that scheme,’’ Cr Rush said.

He said there were five state and federal infrastructure funds that could provide multimillions of dollars for the region.

‘‘The Upper Hunter at this stage has received nothing,’’ Cr Rush said.

‘‘Local government has moved quickly to fund its obligations.

‘‘We now await the state government to endorse the recommendations.’’

It is believed to be the first time a plan of this scale has been attempted to deal with the impact of mining in this area.

Cr Christine Phelps said Muswellbrook was split between high-paid mining employees and others on lower wages trying to live in the same economy.

At the same meeting on Monday night, Cr Rush was re-elected mayor, unopposed as was his deputy Cr Jeff Drayton.