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ALBANY, N.Y. -- New York's highest court will soon hear arguments in a precedent setting case, which will decide whether towns can use zoning laws to ban hydrofracking.

This specific case involves the Town of Dryden, which banned fracking through zoning laws. The town was sued by Norse Energy, which claimed that only the state can regulate an industry.

The Town of Dryden argued that regulating land use is different from regulating an industry and won the first round in the state Supreme Court. But Norse has appealed the decision.

Legal experts say this is a closely watched case as it questions the amount of power a local municipality has versus the state.

"There are real local concerns here, not just regarding the local impacts of fracking, but also about local government's interest in protecting their traditional zoning powers. And in that sense, cities and towns across the country will be watching the outcome of this case," said Shaun Goho, Staff Attorney and Clinical Instructor, Harvard Law School.

Norse is afraid that if the decision is upheld, it would open up the doors for a state-wide ban.

Oral arguments will be heard this Thursday.