The Oakey Coal Action Alliance (OCAA) is making a legal challenge against the Queensland government over New Hope Corporation's (ASX:NHC) New Acland Mine Stage 3.

OCAA is challenging the government's decision to grant an Associated Water Licence in the Land Court, as well as trying to stop New Acland Coal operations altogether.

New Hope Corporation has faced legal battles from OCAA since 2015, with appeals and applications for review.

The company said the legal challenge will likely impact the community and create uncertainty surrounding the mine's operation.