Researchers will test the blood of people in the Kiama and Shellharbour regions to help better understand the health effects of PFAS.
The results will be compared with those from Oakey, Katherine and Williamtown.
The project, conducted by the Australian National University, is part of a nation-wide study.
Dozens of residents living and working in the Williamtown Red Zone participated in a federal government funded blood testing program in recent years to determine their level of exposure.
"ANU has collected survey responses and blood samples from people in three areas of known PFAS contamination Oakey (Qld), Williamtown (NSW) and Katherine (NT). The study will compare the results with information from people who live in similar towns that are not known to have high levels of PFAS in the environment- Dalby (QLD), Kiama and Shellharbour regions (NSW), and Alice Springs (NT)," an ANU spokesperson said.
"The results of the study will be available in mid-2021 and it is anticipated that the findings will be broadly applicable to other identified PFAS contaminated sites.
"Invitations to participate in the study will be sent out to randomly selected residents in the three comparison areas by Services Australia."
Evidence about the health impacts of PFAS exposure was due to be heard in the class action trial for Williamtown, Oakey and Katherine communities who had suffered property loss as a result of PFAS contamination.
The court also accepted expert reports that argued PFAS exposure was linked to cancers
It is believed that the admission of the evidence may have influenced the government's decision to settle the three class actions in February for $212.5 million.
Defence started a detailed site investigation at HMAS Creswell and Jervis Bay Range Facility in March 2017, with the results detecting PFAS in surface water, groundwater and sediment.
The report found widespread PFAS contamination in groundwater both on and off-base, exceeding health-based recommendations.
In June 2018, Defence completed a detailed environmental investigation, into the nature and extent of PFAS from historical use of firefighting foams on, and in the vicinity of Albatross.
Professor Martyn Kirk from ANU's National Epidemical and Population Health Centre told a November 2019 hearing of the Joint Standing Committee on Foreign Affairs, Defence and Trade that the impact of PFAS on mental health was comparable to individuals exposed to asbestos.
"I think the community concerns have been really quite immense....It's hard for us [the investigation team] as well, but we know that communities are suffering so that's been really difficult. The thing that I think has surprised us the most is the depth of feeling and the sense of anxiety," he said.