Tasmanian salmon producer Tassal was hoping to open 28 new cages at Okehampton Bay but following strong opposition from locals the Primary Industries Minister, Jeremy Rockliff, said the 20 year old lease should be reviewed, reports ABC.
The review panel will include representatives from the Environment Protection Authority, recreational boaters, marine farming, marine resource management and local government.
Mr Rockliff said the Government had listened to community concerns about the possible environmental impact.
"We need to ensure we instil and maintain strong community social licence for salmon farming in Tasmania and that's why we've made the decision around Oakhampton Bay," he said.