A billion dollar rail corridor linking Hexham to Williamtown and Newcastle Airport would be among the features of a potential state government investment and growth package under consideration for the area.
The state government is presently assessing the merits of Williamtown for the state's next special activation precinct.
It is estimated the precinct could generate about 10,000 jobs focusing on the aerospace and defence industries.
If successful, the state government would streamline planning approvals and tailor infrastructure investment in areas such rail, roads and drainage to support the precinct's establishment.
Port Stehens mayor Ryan Palmer who was among a Hunter delegation that travelled to Canberra in February to brief the defence industry minister, said an area of about 240 hectares had been identified as a potential site for the precinct.
"The flow-on benefits for the Lower Hunter would be enormous for generations to come," he said.
The precinct would build on the defence, aviation and technology commercial precinct (Astra Aerolab) adjacent to Williamtown airport.
Launched last year with a $11.7million state government grant, it is hoped the Astra Aerolab precinct will ultimately generate more than 5500 jobs in the Hunter and inject $246 million into the state's economy.
"With the F35s arriving here last year there are businesses that are out there bidding for maintenance contracts and sustainability contracts and we would like to see them right here in the Hunter at Williamtown," Mr Palmer said.
Significantly, the land that has been earmarked for the special activation zone falls within the per-and polyfluoroalkyl substances (PFAS) management zone.
"It would certainly help a lot of landowners in that area who have been affected by PFAS contamination," Mr Palmer said.
Special activation precincts, driven by the $4.2 billion Snowy Hydro legacy fund, are part of the government's 20-Year economic vision for regional NSW.
Draft master plans are presently being developed for agricultural-based precincts in Parkes and Wagga Wagga
A spokeswoman for the Department of Premier and Cabinet confirmed the government was following up on an election pledge to undertake a scoping studies to develop a business case for a potential Williamtown special activation precinct.
"This investigation involves extensive research, analysis and forecasting to assess whether an investment in creating a special activation precinct makes sense," she said.