NSW legislation does not prevent Peter Dutton building a nuclear reactor in the Hunter, despite Premier Chris Minns' insistence the state will not remove its "nuclear prohibition".
The NSW Uranium Mining and Nuclear Facilities (Prohibitions) Act bans the state government from operating nuclear power plants but does not apply to Commonwealth entities.
The 1986 legislation says the ban does not apply to "the construction or operation, under an Act of the Commonwealth, of a nuclear facility by the Australian Atomic Energy Commission or by any authority of the Commonwealth that replaces that Commission".
The Australian Atomic Energy Commission was replaced by the Australian Nuclear Science and Technology Organisation in 1987.
Mr Dutton announced on Wednesday that a Coalition government would build small modular reactors on the site of Liddell Power Station near Muswellbrook and at Lithgow.
The NSW law appears to leave the door open to Mr Dutton imposing nuclear reactors on NSW.
Mr Minns said on Wednesday that "we're not going to remove the nuclear prohibition on energy production in NSW, so I don't know how they're going get around it".
The Newcastle Herald has approached Mr Minns for comment on the wording of the NSw legislation.
A Dutton government would need to convince the Senate to change the Australian Radiation Protection and Nuclear Safety Act 1998, a Commonwealth law which prohibits nuclear power stations.
