The Upper Hunter could host one of two nuclear plants in NSW to be built under a Coalition government.
Opposition Leader Peter Dutton confirmed that land near the former Liddell power station at Muswellbrook had been identified for a future plant.
Other ageing or retired coal-fired power sites earmarked for nuclear generation under the Coalition's long-awaited energy strategy included Mt Piper near Lithgow, Loy Yang in Victoria's Gippsland region, Callide and Tarong in Queensland, Port Augusta in South Australia and Collie in Western Australia.
The coalition's energy statement said the locations had key advantages, including transmission lines, infrastructure and workers.
It argued its policy, released on Wednesday, would provide "cheaper, cleaner and more consistent energy", while lowering prices for families and businesses.
Australian homes could be powered by nuclear energy by 2035 at the earliest, according to the proposal.
Mr Dutton said the reactors would be owned by the Commonwealth, which would form partnerships with experienced nuclear companies which would operate them.
However, the policy, which most experts say is significantly more expensive than the government's clean energy strategy, is uncosted.
"We will have more to say in relation to the cost in due course, and, as you know, we've done this in a step-by-step process. The focus today is on the sites," Mr Dutton said.
Reaction to the plan across the Hunter was mixed.
While some people believe nuclear power to be superior and ultimately cheaper than renewables, others pointed to enormous upfront costs and the lead time needed to build a nuclear plant.
"It's the only common sense way to go for the future," Muswellbrook's Railway Hotel publican Greg Smith said.
But Hunter MP Dan Repacholi, speaking at the Liddell Power Station, accused Mr Dutton of not having the courage to announce his plans in one of the potentially affected communities.
"Peter Dutton stood up in the centre of Sydney today to announce his half-baked nuclear plan," he said.
"He didn't have the balls to come to the Hunter or any other region that will have one of his nuclear power stations and make the announcement."
He said a Hunter-based nuclear reactor would put plans to transform the Liddell Power Station site into a clean energy hub at risk.
"We've got big plans for the Liddell site, 2 months ago we were at Liddell announcing the billion dollar Solar SunShot program that will generate thousands of jobs.
"Dutton's nuclear fantasy puts that under threat. His plan will rip those jobs away.
"So the people of the Hunter have a clear choice, we either have thousands of well-paid manufacturing jobs that will lead to cheaper energy, or we have Dutton's nuclear fantasy with no costings and no details on how they will build the bloody things."
Nationals Upper Hunter MP Dave Layzell said he did not support the plan to locate a nuclear reactor near Muswellbrook.
"I fully support removing the nuclear power ban, however, I do not support the location nominated by the Federal Coalition," he said.
"It is far too soon to have a realistic discussion with the people of the Hunter. "So I will not support a facility in the Hunter unless we better understand the local benefits."
Committee for the Hunter chief executive Alice Thompson said while it supported a conversation on nuclear, the region could not afford to have energy sucked out from efforts to replace the electricity that was being lost from ageing coal-fired power stations.
"Of course there can be debate and discussion on the role of nuclear in a future energy mix. Community consultation and the politics on nuclear are important, but this should primarily be led by evidence, expert advice and economics," Ms Thompson said.
"We would also expect proposals for significant public funding to go through well-established government investment gateway and assurance processes.
"But right now we need leadership focused on the replacement of electricity from closing coal fired power plants and the decarbonisation of heavy industry over the next decade."
In order to proceed the Coalition will need to convince state premiers to overturn nuclear bans.
NSW Premier Chris Minns said he would not remove the prohibition on nuclear power production.
Mr Dutton said a Coalition government would start by building either small modular reactors, which are not yet in commercial production, or a large-scale reactor.
He said the small reactors could be operating by 2035, while the larger would produce electricity by 2037.
But CSIRO and Australian Energy Market Operator modelling updated last month found the cost of building a large-scale nuclear power plant would be at least $8.5 billion and would likely take beyond 2040 to complete due to infrastructure, security and safety hurdles.
The modelling, contained in the latest edition of the GenCost report found that overall, renewable energy costs would be lowest at $73 to $128 per megawatt hour, while nuclear costs would hit $141 to $233.
Nuclear small modular reactors would cost $230 to $382 per megawatt hour.
AGL, which owns the Liddell and Bayswater sites, has also ruled out producing nuclear enegy.
Chief executive Damien Nicks said earlier this year that the company was committed to transforming its coal-fired power generation sites into low-emissions industrial energy hubs.
"There is no viable schedule for the regulation or development of nuclear energy in Australia, and the cost, build time and public opinion are all prohibitive," he said.
