Adani wants to take up to 12.5 billion litres of water from the Suttor River in central Queensland as part of its North Galilee Water Scheme project, which would supply the mine with water to wash coal, keep dust down and reduce fire hazards.
The ACF will argue the minister made an error of law in not applying the water trigger.
It said the pipeline was essential infrastructure to service the coal mine and it would not be built at all if not for Adani's mine so the water trigger should be applied.
According to Adani, the legal action will not stop the Carmichael project proceeding because it does not need the North Galilee Water Scheme finalised in order to start work on the project.
"The Australian Conservation Foundation and the Environmental Defenders Office are wasting the court's time and resources, while also wasting taxpayer funds and the ACF's own charitable donations," it said.
"Adani will continue to deliver the Carmichael project, and we will do so in line with our approvals, along with the strict regulations and legislation that govern our Australian resources industry."
The Australian Conservation Foundation has conducted unsuccessful litigation against Adani in the past, resulting in the ACF being ordered by the court to pay Adani's legal costs.
"Once again, anti-mining activists are standing in the way of thousands of jobs that are desperately needed by regional Queenslanders," Adani said.
"Adani has been through a rigorous and strict approvals process over the last eight years and we have met all of those requirements. Accordingly we now expect that we will be treated no differently to any other Australian miner."
The company said its approvals had already been backed by the courts nine times over.
