A parliamentary inquiry is to be held into the performance of NSW's Environment Protection Authority after a string of controversies that have dogged the agency, including botched prosecutions, accusations of cover-ups, mismanagement and a referral to the corruption watchdog.

Labor's environment spokesman, Luke Foley, successfully moved for the inquiry in the NSW Upper House on Thursday after warning that the EPA appeared more focused on protecting polluting industries than looking after the community and human health.

Contamination in the Botany area had residents concerned. Credit:Sahlan Hayes

It also follows the introduction of a private member's bill last year by opposition MP Ron Hoenig calling for the EPA to be stripped of its powers to prosecute serious environmental offences because it was "incompetent" and does not have the "guts" to go after environmental criminals. Mr Hoenig wanted the powers to be given to the Director of Public Prosecutions.

EPA chief executive officer Barry Buffier said the inquiry would be an "opportunity to increase public awareness and understanding about the important role we play in protecting the communities and environment of NSW".