The Tasmanian Government has said it will "vigorously" defend itself against Huon Aquaculture's legal action over its management of a Tasmanian waterway for fish farming, reports ABC News.

Huon, Australia's second-largest salmon farming company, initiated Supreme Court proceedings Monday against the Tasmanian Government for allegedly failing to protect the environment and the World Heritage-listed area in Macquarie Harbour.

In November 2016, following a Four Corners investigation, the Tasmanian Government's Environment Protection Authority (EPA) said it was well equipped to oversee the state's AUD 700 million ($533.7