Fancy seeing rocket launch pads in Queensland? It could be a reality as the State Government sets its sights to the stars to become a leader in Australia's space race.

An inquiry is being launched into how Queensland could become the home of research, design and manufacturing for the nation's future space needs.

State Development Minister Cameron Dick said he could see Queensland play a leading role in developing technologies like rockets and satellites, from design, through to manufacturing and even launch zones.

"From a very simple perspective, we've got potential launch capacity, being closer to the equator in a place like Queensland," he said.

"But I think more realistically it's more about the innovative capacity of Queensland companies and some of those emerging high-tech companies are based in regional Queensland."

Mr Dick said he had met with leaders from the newly formed Australian Space Agency, to spruik the state's potential, particularly in regional areas.

"In many areas, including aerospace, we've had a very long history, a 20-year relationship with Boeing and other large companies based in Queensland," he said.

"We want to now leverage off that to anything that can fly in the sky and into space.

"We want our fair share in Queensland. We want to lobby hard to make sure we get as much activity from the Australian Space Agency in Queensland as possible."

The Australian space industry is worth between $3-4 billion annually. ( ESA/ATG medialab )

The Australian space industry is worth between $3-4 billion annually and employs 10,000 people.

Mr Dick said hundreds of jobs could be created in Queensland with the expansion of space technology.

"The space industry is one that has inspired for many generations now … it's almost 50 years since man set foot on the Moon and that was a very inspiring time in world history," he said.

"That technology has now gone into everyday lives, into every phone that we use, those sorts of communications that we rely on for entertainment, emergencies and mapping of land.

"We want to know where Queensland can help support the supply chain for the production of equipment and technology, to support space-based industries, and look at how we can further develop this part of the Queensland economy."

Spaceport idea first flagged in 1980s

It is not the first time a government has floated the idea of a space hub, with former Queensland premier Sir Joh Bjelke-Petersen backing a proposal for a rocket launch facility in 1986 known as the Cape York Spaceport.

Cook Shire Council Mayor Peter Scott said the idea of developing a space station in Queensland's Cape York was first mooted 30 years ago.

"Weipa would seem to be the best spot because you can bring the materials in through the Weipa port, it's close to a sizeable population, and there's also the old Scherger air base," Cr Scott said.

"We've very keen to support it."

Weipa would seem to be the best spot for a space station, Cook Shire Mayor Peter Scott says. ( ABC News: Casey Briggs )

'Hope Labor's head isn't in the stars': Opposition

Queensland Opposition Leader Deb Frecklington said any opportunity to boost the state's unemployment rate of 6.1 per cent was worth looking into.

"Unfortunately we have the second-worst unemployment rate in the nation so we welcome any initiative that will create jobs," Ms Frecklington said.

"I just hope Labor's head isn't in the stars with this one and that's it's not just more false hope from a government that has a record of promising the world and delivering nothing."

Ms Frecklington said it was essential regional communities were given a chance to capitalise on the nation's growing space industry.

"It would be essential that the regions get involved in this but I think in relation to these sorts of projects, quite often we see head offices set up in our more urban areas, so it would be important to make sure the regions are prioritised and look at the details," she said.

Best place to launch satellites from Australia

CEO of the Queensland-based Gilmour Space Technologies, Adam Gilmour, said there was huge potential for a space station in Queensland.

"We are in the middle of developing a hybrid rocket that will send small satellites into orbit," Mr Gilmour said.

"We're also pretty close to securing another large round of investment funding that's going to allow us to develop a full orbital vehicle and send satellites into space, but we don't have anywhere to launch them from Australia.

"We've done a lot of trajectory analysis and figured out the best place to launch satellites from Australia is the coast of Queensland.

"The closer you are to the equator, the more kick you get from the Earth's spin.

"You really can launch almost any mission you want if you pick the right place on the Queensland coast and there's a lot of places on the coast that will tick that box and no other state has that ability."

There was a proposal for a rocket launch facility in 1986 known as the Cape York Spaceport. ( Supplied: QPS )

Land returned to traditional owners

In May 2017, Ms Palaszczuk announced Cape York land earmarked in the 1980s for the spaceport had formally been returned to Bromley's traditional owners.

The Bromley Land Transfer Agreement covers an area the size of the Brisbane metropolitan area and is located on the north-east coast of Cape York Peninsula, north-west of Cape Grenville, approximately 800 kilometres by road north of Cairns.

"When the Bjelke-Peterson Government announced plans in 1986, they didn't bother to consult the traditional owners, they just took the land," Ms Palaszczuk said at the time.

"It was wrong and ... my government has returned Bromley to its rightful owners."

There are 28 Aboriginal-owned and jointly-managed National Parks on Cape York Peninsula, covering an area of over 2 million hectares.