Tasmania has formally asked the federal government not to alter fishing arrangements at Macquarie Harbour on the state's west coast, where an endangered fish lives.
Australian Environment Minister Tanya Plibersek has ordered a review of aquaculture operations in the remote harbour where the Maugean skate is at risk of extinction.
The Maugean skate can only be found in Macquarie Harbour, which is about six times the size of Sydney Harbour.
Environmental groups have argued a decision to expand a salmon farm in 2012 impacted water quality and contributed to a decline in the skate population.
However, Tasmanian Environment Minister Roger Jaensch said there was no need to reverse the decision as protections were already in place, including a conservation action plan to protect the Maugean skate.
"Current actions to manage, monitor and regulate marine farming activities in Macquarie Harbour are effective," Mr Jaensch said in a statement.
Overturning the 2012 decision would have "devastating ramifications for Tasmania's salmon industry" and local communities.
"It would also set a chilling sovereign risk precedent for all other resource-based industries across regional and rural Australia which rely on past federal environmental decisions for their licence to operate and may now be open to retrospective reviews," he said.
The Maugean skate population has declined by 47 per cent since 2012, according to a University of Tasmania report released in May last year.
