The $150 million, 26-turbine Glen Innes Wind Farm project has been approved by the NSW Department of Planning, despite a campaign by some neighbours for a 2km setback and an ongoing State Parliament inquiry into rural wind farms.

The project is the first wind farm development to be approved in northern NSW and is expected to supply power to more than 25,000 homes.

Announcing the approval in a statement issued early on Tuesday, Minister for Planning Kristina Keneally said the development would support 40 construction and four ongoing jobs.

"As well as helping to secure the State's electricity supply with green energy, the wind farm also provides an important boost for jobs and investment in the local economy," she said.

In addition the proponents, NP Power and Infigen Energy (recently replacing partners Babcock and Brown Wind Partners), would be required to pay council $75,000 a year toward a community enhancement program.

Due to "unacceptable visual and noise impacts" one of the 130m turbines was removed from the plan, Ms Keneally said.

Member for Northern Tablelands Richard Torbay said he had been informed that if the Government followed the 2km setback guidelines, in accordance with Glen Innes Severn Council's Development Control Plan for Wind Power Generation, the development would be reduced to 16 turbines (13 if unoccupied dwellings were also considered).

"The government will now have to spend time and tax payers money in the Land and Environment Court trying to defend these poor decisions when it could have established sound guidelines to facilitate developments and have them welcomed across regional NSW," he said.

Nearby resident Maryanne Evans said she was devastated by the news as it ignored neighbour, council and community views for a 2km setback.

"We were pleased they removed the turbine (planned to sit 900m from her house) but we still have to contend with seven other turbines within 2km," she said. " We are astonished that they would make this decision without waiting for the wind farm inquiry report."

Fellow resident Ashley Peake said a tree screen advocated by the department for homes within 3km of a turbine was indicative of how little the government knew about the area. He said the turbines would sit on elevated ridges the size of a 40 storey building and trees could not block the turbines.

"The turbines will create noise and visual pollution, health effects and bring our property values down," he said. "Just like the situation in Victoria, people will be forced out of their houses because the turbines are too close to properties and then the community suffers."

Mayor Steve Toms said while he was disappointed the government had not enforced the 2km set back he said if all three proposed wind farms currently before the Department of Planning were approved the area would have 300 turbines, putting Glen Innes at the centre of environment and economic benefit.

"It is going to change the visual landscape, whether positive or negative," he said.

Wind turbine host Rob Dulhunty said it was a great day for the environment and a great day for the Glen Innes community to be part of the solution.

"Considering the development application had been pending for a long time and the parliamentary inquiry and council's DCP came about post DA they really shouldn't apply (to this development)," he said.

Vice President of NP Power Colin Patterson said the development would be the company's second wind farm in NSW. He said a timeframe for construction was not yet known but there was a good percentage given that local contractors would be utilised.

"One thing that should be kept in mind is that we have never got an approved project and left it on the shelf. Once approved it has always been our intention to build as quick as possible and this wind farm will be no different," he said.