Queensland Premier Peter Beattie said despite extensive testing over more than a decade finding no link between airborne pollution and increased health risks, many people in the area remained concerned about the impact of pollution.
"Some people in the Gladstone community have raised concerns about potential health issues caused by airborne pollution, and the apparently high level of Chronic Lymphoid Leukaemia," he said.
"If there is evidence that industry or other sources are causing pollution which is found to be making people sick, we will act immediately to fix it."
Gladstone's industry, which includes cement manufacturing and mineral processing, pointed out that the 'Gladstone Airshed Model' was established in 1999 and takes the emissions of existing industry into account in the planning and approvals systems applied to all new industrial projects.
The two-year EPA-lead investigation will collect air quality data, which will then be analysed by Queensland Health to see if there is any impact on human health. An independent environmental specialist will be appointed to review the findings.
The EPA has been monitoring air quality in the "industrial boom town" since 1979 measuring key industry pollutants such as nitrogen oxides and sulphur dioxide. The tests have previously shown that Gladstone's air quality is well within national standards.
Randall Byram, chief executive of the Gladstone Economic and Industry Development Board (GEIDB), said he would be surprised if the study showed industry caused health problems as the planning and approval systems were extensively checked and continuously improved and updated.
"We must show compassion and care for those in our community who have fallen ill. But in showing this compassion we must not lose sight of the fact that scientific studies have been done on the Gladstone airshed many times," he said.
"The separation distances involved and the airshed model we use ensures that new projects can be accommodated safely. I welcome the skeptics – they keep us on our toes. But the skeptics need to know that Gladstone is becoming known internationally as a model industrial city. I believe we have a sustainable industrial city here."