The commissioner will act as an advocate, and have in place a template agreement regarding access, NSW deputy premier Andrew Stoner told reporters at his party's state conference in Bowral.
"Farmers and other landholders do need to be treated fairly and with respect,” he said.
"We'll be looking to lift the bar when it comes to the negotiations and also compensation."
The NSW minerals industry has cautiously welcomed the announcement, stating that it could help promote confidence in the planning process and provide certainty for all land use industries if implemented properly.
NSW Minerals Council chief executive Stephen Galilee said: “We’re yet to examine the detail, but broadly speaking, we hope this new role will provide increased confidence and certainty within the assessment process.
“The NSW mining industry is also keen to ensure that this new position does not add an extra layer of bureaucracy to what is already a very complex assessment and approvals system.”
Galilee said the NSWMC was hopeful the new position would be a step towards the NSW government fulfilling its recent budget commitment to tackle the backlog of project planning approvals.
In relation to the tasking of the land and water commissioner to develop a standardised land access agreement, Galilee noted that the NSW Minerals Council, NSW Farmers Association and the NSW government have already negotiated a template Land Access Agreement for Minerals Exploration, and it has been ready for public release for several months.
"The NSW Minerals Council believes it is in the public interest for the template Land Access Agreement for Minerals Exploration to be released immediately. This would assist landowners and provide greater certainty for all," Galilee said.
In relation to the NSW government's proposal to refund $1 for every $2 committed by the coal seam gas industry to newly-established Regional Community Funds, Mr Galilee noted that the minerals industry in NSW has an established track record of investment in local communities, estimated by ACIL Tasman to be worth at least $109 million a year.
"The government must consider extending the arrangements announced today to make an equivalent $1 for $2 contribution towards the funding already being invested in local communities by the mining industry," Galilee said.
“A lot of misinformation has been circulated about mining in NSW and it is absolutely critical that the new land and water commissioner contributes to a greater public understanding of the facts.
“We will continue to advocate a facts-based approach to land use and planning, recognising the very significant contribution that the mining industry makes to the NSW economy and regional development across the state."